The9 (NASDAQ:NCTY) and WNS (NYSE:WNS) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.
Volatility & Risk
The9 has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, WNS has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for The9 and WNS, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WNS has a consensus target price of $60.75, indicating a potential upside of 33.08%. Given WNS’s higher possible upside, analysts clearly believe WNS is more favorable than The9.
Earnings and Valuation
This table compares The9 and WNS’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The9||$11.24 million||0.82||-$18.16 million||N/A||N/A|
|WNS||$758.00 million||3.06||$86.43 million||$1.81||25.22|
WNS has higher revenue and earnings than The9.
This table compares The9 and WNS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
1.2% of The9 shares are held by institutional investors. Comparatively, 84.1% of WNS shares are held by institutional investors. 30.8% of The9 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
WNS beats The9 on 9 of the 11 factors compared between the two stocks.
The9 Limited, together with its subsidiaries, operates as an online game developer and operator in the People’s Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games. It also provides training services, such as smartphone application programming training services to college students. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People’s Republic of China.
WNS (Holdings) Limited, a business process management company, together with its subsidiaries, provides data, voice, analytical, and business transformation services worldwide. It operates through two segments, WNS Global BPM and WNS Auto Claims BPM. The company offers industry-specific services to clients primarily in insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; utilities; consulting and professional services; healthcare; banking and financial services; and shipping and logistics industries. It also provides shared services, such as customer interaction, finance and accounting, research and analytics, technology, legal, and human resources outsourcing services. In addition, the company offers transformation services designed to help its clients to modify their business processes to enhance productivity, as well as manage changes in the business environment and leverage business knowledge to increase market competitiveness. Further, it provides claims handling and repair management services for automobile repairs through a network of third party repair centers; and a suite of accident management services, such as credit hire and credit repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.
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