Head-To-Head Analysis: The9 (NCTY) vs. Resources Connection (RECN)

Share on StockTwits

The9 (NASDAQ:NCTY) and Resources Connection (NASDAQ:RECN) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

80.3% of Resources Connection shares are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Comparatively, 9.8% of Resources Connection shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for The9 and Resources Connection, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The9 0 0 0 0 N/A
Resources Connection 0 1 0 0 2.00

Resources Connection has a consensus target price of $16.00, indicating a potential upside of 0.63%. Given Resources Connection’s higher probable upside, analysts plainly believe Resources Connection is more favorable than The9.

Valuation & Earnings

This table compares The9 and Resources Connection’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The9 $2.54 million N/A -$31.58 million N/A N/A
Resources Connection $654.13 million 0.78 $18.82 million $0.98 16.22

Resources Connection has higher revenue and earnings than The9.

Dividends

Resources Connection pays an annual dividend of $0.52 per share and has a dividend yield of 3.3%. The9 does not pay a dividend. Resources Connection pays out 53.1% of its earnings in the form of a dividend. Resources Connection has increased its dividend for 6 consecutive years.

Profitability

This table compares The9 and Resources Connection’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The9 N/A N/A N/A
Resources Connection 3.57% 11.85% 7.62%

Risk & Volatility

The9 has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, Resources Connection has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Summary

Resources Connection beats The9 on 9 of the 12 factors compared between the two stocks.

The9 Company Profile

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.

Resources Connection Company Profile

Resources Connection, Inc. provides business consulting services under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers process transformation and optimization, financial reporting and analysis, technical and operational accounting, and merger and acquisition due diligence and integration services; new accounting standards implementation and remediation support services; and audit readiness, and preparation and response services. It also provides information management services comprising program and project management, business and technology integration, data strategy, and business performance management. In addition, the company offers corporate advisory, strategic and crisis communications, and restructuring services; and governance, risk, and compliance (GRC) management services that include governance, assessments, auditing and automation of programs managing regulatory compliance, enterprise risk management, internal audits, operational risk management, and data security and privacy services. Further, it provides strategy development, procurement and supplier management, logistics and materials management, supply chain planning and forecasting, and unique device identification compliance; and change management, organization development and effectiveness, employment engagement, compensation and incentive plan strategies and design, and optimization of human resources technology and operations. Additionally, the company offers legal and regulatory supporting services for commercial transactions, global compliance initiatives, law department operations, and law department business strategy and analytics. It also provides policyIQ, a cloud-based GRC software application. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

Receive News & Ratings for The9 Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The9 and related companies with MarketBeat.com's FREE daily email newsletter.