Financial Contrast: Crescent Capital BDC (NASDAQ:CCAP) and The9 (NASDAQ:NCTY)

The9 (NASDAQ:NCTY) and Crescent Capital BDC (NASDAQ:CCAP) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 49.5% of Crescent Capital BDC shares are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Comparatively, 1.0% of Crescent Capital BDC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for The9 and Crescent Capital BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	0.00
Crescent Capital BDC	0	1	5	0	2.83

Crescent Capital BDC has a consensus target price of $19.33, suggesting a potential downside of 3.04%. Given Crescent Capital BDC’s stronger consensus rating and higher probable upside, analysts clearly believe Crescent Capital BDC is more favorable than The9.

Earnings and Valuation

This table compares The9 and Crescent Capital BDC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$25.22 million	5.38	$2.82 million	N/A	N/A
Crescent Capital BDC	$184.13 million	4.01	$83.84 million	$2.55	7.82

Crescent Capital BDC has higher revenue and earnings than The9.

Risk and Volatility

The9 has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Profitability

This table compares The9 and Crescent Capital BDC’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
Crescent Capital BDC	47.06%	12.20%	5.57%

Summary

Crescent Capital BDC beats The9 on 9 of the 12 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 Crescent Capital BDC

Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.