Critical Analysis: BTC Digital (NASDAQ:BTCT) & Bit Digital (NASDAQ:BTBT)

BTC Digital (NASDAQ:BTCT) and Bit Digital (NASDAQ:BTBT) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

7.3% of BTC Digital shares are owned by institutional investors. Comparatively, 47.7% of Bit Digital shares are owned by institutional investors. 6.8% of BTC Digital shares are owned by company insiders. Comparatively, 41.3% of Bit Digital shares are owned by company 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.

Profitability

This table compares BTC Digital and Bit Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BTC Digital	N/A	N/A	N/A
Bit Digital	33.30%	-1.48%	-1.28%

Risk & Volatility

BTC Digital has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Bit Digital has a beta of 4.79, meaning that its share price is 379% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for BTC Digital and Bit Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BTC Digital	0	0	0	0	N/A
Bit Digital	0	0	2	0	3.00

Bit Digital has a consensus target price of $6.50, suggesting a potential upside of 57.38%. Given Bit Digital’s higher probable upside, analysts plainly believe Bit Digital is more favorable than BTC Digital.

Earnings and Valuation

This table compares BTC Digital and Bit Digital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BTC Digital	$6.77 million	0.51	-$2.82 million	N/A	N/A
Bit Digital	$86.85 million	3.92	-$13.89 million	$0.30	13.77

BTC Digital has higher earnings, but lower revenue than Bit Digital.

Summary

Bit Digital beats BTC Digital on 8 of the 11 factors compared between the two stocks.

About BTC Digital

BTC Digital Ltd. a crypto asset technology company engages in bitcoin mining business. It is also involved in mining machines resale and rental business. The company was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023. The company was founded in 2006 and is headquartered in Shenzhen, China.

About Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.