The9 (NASDAQ:NCTY) versus MDB Capital (NASDAQ:MDBH) Critical Review

Risk and Volatility

The9 has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, MDB Capital has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Insider & Institutional Ownership

0.5% of The9 shares are held by institutional investors. Comparatively, 0.4% of MDB Capital shares are held by institutional investors. 30.8% of The9 shares are held by insiders. Comparatively, 55.5% of MDB Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares The9 and MDB Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$25.22 million	5.53	$2.82 million	N/A	N/A
MDB Capital	$5.99 million	9.63	-$6.97 million	($2.87)	-2.16

The9 has higher revenue and earnings than MDB Capital.

Profitability

This table compares The9 and MDB Capital’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
MDB Capital	N/A	-75.31%	-63.59%

Summary

The9 beats MDB Capital on 6 of the 8 factors compared between the two stocks.

About The9

The9 Limited operates as a cryptocurrency mining business in China, Eastern Europe, Asia, and North America. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People’s Republic of China.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.