Burford Capital (NYSE:BUR) versus Stronghold Digital Mining (NASDAQ:SDIG) Head-To-Head Review

Stronghold Digital Mining (NASDAQ:SDIG) and Burford Capital (NYSE:BUR) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Volatility and Risk

Stronghold Digital Mining has a beta of 2.9, meaning that its share price is 190% more volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Stronghold Digital Mining and Burford Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stronghold Digital Mining	0	2	1	0	2.33
Burford Capital	0	0	3	0	3.00

Stronghold Digital Mining currently has a consensus target price of $6.17, suggesting a potential upside of 15.70%. Burford Capital has a consensus target price of $19.50, suggesting a potential upside of 44.44%. Given Burford Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Burford Capital is more favorable than Stronghold Digital Mining.

Insider and Institutional Ownership

19.3% of Stronghold Digital Mining shares are owned by institutional investors. 21.1% of Stronghold Digital Mining shares are owned by company insiders. Comparatively, 0.2% of Burford Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Stronghold Digital Mining and Burford Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stronghold Digital Mining	-7.61%	40.15%	12.99%
Burford Capital	45.81%	12.58%	6.75%

Earnings and Valuation

This table compares Stronghold Digital Mining and Burford Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stronghold Digital Mining	$74.97 million	1.20	-$71.40 million	($4.62)	-1.16
Burford Capital	$563.24 million	5.25	$610.52 million	$1.43	9.44

Burford Capital has higher revenue and earnings than Stronghold Digital Mining. Stronghold Digital Mining is trading at a lower price-to-earnings ratio than Burford Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Burford Capital beats Stronghold Digital Mining on 9 of the 14 factors compared between the two stocks.

About Stronghold Digital Mining

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.

About Burford Capital

Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.