Head-To-Head Analysis: Iris Energy (NASDAQ:IREN) and The9 (NASDAQ:NCTY)

Iris Energy (NASDAQ:IREN) and The9 (NASDAQ:NCTY) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

Iris Energy has a beta of 3.47, meaning that its stock price is 247% more volatile than the S&P 500. Comparatively, The9 has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Insider & Institutional Ownership

41.1% of Iris Energy shares are held by institutional investors. Comparatively, 0.5% of The9 shares are held by institutional investors. 21.5% of Iris Energy shares are held by insiders. Comparatively, 30.8% of The9 shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Iris Energy and The9, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iris Energy	0	0	6	0	3.00
The9	0	0	0	0	N/A

Iris Energy presently has a consensus price target of $17.83, indicating a potential upside of 137.46%. Given Iris Energy’s higher probable upside, equities analysts clearly believe Iris Energy is more favorable than The9.

Profitability

This table compares Iris Energy and The9’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iris Energy	N/A	N/A	N/A
The9	N/A	N/A	N/A

Valuation and Earnings

This table compares Iris Energy and The9’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iris Energy	$164.61 million	6.69	-$171.87 million	N/A	N/A
The9	$179.05 million	0.29	$2.82 million	N/A	N/A

The9 has higher revenue and earnings than Iris Energy.

Summary

Iris Energy beats The9 on 5 of the 8 factors compared between the two stocks.

About Iris Energy

Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.

About The9

The9 Limited, together with its subsidiaries, operates as Internet company in the People's Republic of China and internationally. It also involves in the operation of cryptocurrency mining and Non-Fungible Token platform NFTSTAR, a NFT trading and community platform that provides users with purchase, trade, and interactive activities. 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.