Financial Analysis: Cipher Mining (NASDAQ:CIFR) vs. Bitcoin Depot (NASDAQ:BTM)

Bitcoin Depot (NASDAQ:BTM) and Cipher Mining (NASDAQ:CIFR) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of recent ratings and target prices for Bitcoin Depot and Cipher Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitcoin Depot	0	1	2	1	3.00
Cipher Mining	0	0	7	2	3.22

Bitcoin Depot presently has a consensus price target of $3.67, indicating a potential upside of 144.44%. Cipher Mining has a consensus price target of $7.21, indicating a potential upside of 31.17%. Given Bitcoin Depot’s higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than Cipher Mining.

Risk and Volatility

Bitcoin Depot has a beta of -0.35, meaning that its share price is 135% less volatile than the S&P 500. Comparatively, Cipher Mining has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500.

Valuation & Earnings

This table compares Bitcoin Depot and Cipher Mining”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$629.50 million	0.14	-$26.10 million	($1.87)	-0.80
Cipher Mining	$158.67 million	10.75	-$25.78 million	$0.06	91.67

Cipher Mining has lower revenue, but higher earnings than Bitcoin Depot. Bitcoin Depot is trading at a lower price-to-earnings ratio than Cipher Mining, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

9.2% of Bitcoin Depot shares are held by institutional investors. Comparatively, 12.3% of Cipher Mining shares are held by institutional investors. 20.1% of Bitcoin Depot shares are held by company insiders. Comparatively, 2.3% of Cipher Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Bitcoin Depot and Cipher Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitcoin Depot	-3.10%	-307.37%	-22.72%
Cipher Mining	11.43%	3.41%	2.98%

Summary

Cipher Mining beats Bitcoin Depot on 12 of the 15 factors compared between the two stocks.

About Bitcoin Depot

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

About Cipher Mining

Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.