Head to Head Contrast: X Financial (NYSE:XYF) & Hut 8 (NASDAQ:HUT)

Hut 8 (NASDAQ:HUT) and X Financial (NYSE:XYF) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Risk and Volatility

Hut 8 has a beta of 4.05, indicating that its stock price is 305% more volatile than the S&P 500. Comparatively, X Financial has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hut 8 and X Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$73.90 million	17.70	-$186.77 million	N/A	N/A
X Financial	$678.16 million	0.48	$167.16 million	$3.65	1.82

X Financial has higher revenue and earnings than Hut 8.

Insider & Institutional Ownership

31.8% of Hut 8 shares are held by institutional investors. Comparatively, 1.2% of X Financial shares are held by institutional investors. 12.0% of Hut 8 shares are held by insiders. Comparatively, 31.6% of X Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Hut 8 and X Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hut 8	N/A	N/A	N/A
X Financial	25.38%	20.63%	10.74%

Analyst Ratings

This is a summary of recent recommendations for Hut 8 and X Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	0	0	6	0	3.00
X Financial	0	0	0	0	N/A

Hut 8 currently has a consensus price target of $16.50, indicating a potential upside of 14.03%. Given Hut 8’s higher probable upside, analysts clearly believe Hut 8 is more favorable than X Financial.

Summary

X Financial beats Hut 8 on 6 of the 11 factors compared between the two stocks.

About Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.

About X Financial

X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.