Analyzing Bitfarms (NASDAQ:BITF) and Bitdeer Technologies Group (NASDAQ:BTDR)

Bitdeer Technologies Group (NASDAQ:BTDR) and Bitfarms (NASDAQ:BITF) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Earnings & Valuation

This table compares Bitdeer Technologies Group and Bitfarms”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitdeer Technologies Group	$420.89 million	1.89	-$56.66 million	($0.41)	-17.34
Bitfarms	$172.70 million	4.86	-$104.04 million	($0.38)	-5.39

Bitdeer Technologies Group has higher revenue and earnings than Bitfarms. Bitdeer Technologies Group is trading at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

22.3% of Bitdeer Technologies Group shares are owned by institutional investors. Comparatively, 20.6% of Bitfarms shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Bitdeer Technologies Group and Bitfarms, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitdeer Technologies Group	0	0	8	0	3.00
Bitfarms	0	1	4	0	2.80

Bitdeer Technologies Group currently has a consensus price target of $14.00, suggesting a potential upside of 96.91%. Bitfarms has a consensus price target of $3.66, suggesting a potential upside of 78.54%. Given Bitdeer Technologies Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Bitdeer Technologies Group is more favorable than Bitfarms.

Profitability

This table compares Bitdeer Technologies Group and Bitfarms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitdeer Technologies Group	-5.69%	-2.56%	-1.40%
Bitfarms	-62.79%	-18.94%	-16.08%

Risk and Volatility

Bitdeer Technologies Group has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.64, indicating that its stock price is 264% more volatile than the S&P 500.

Summary

Bitdeer Technologies Group beats Bitfarms on 9 of the 14 factors compared between the two stocks.

About Bitdeer Technologies Group

Bitdeer Technologies Group operates as a technology company for blockchain and computing. It offers hash rate sharing solutions, including Cloud hash rate and Hash rate marketplace; and a one-stop mining machine hosting solutions encompassing deployment, maintenance, and management services for efficient cryptocurrency mining; as well as mines cryptocurrencies for its own account. The company also operates mining datacenters to generate hash rate; handles various processes involved in computing, such as equipment procurement, transport logistics, datacenter design and construction, equipment management, and daily operations; and sells mining machines. The company is headquartered in Singapore.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.