Critical Analysis: BitFuFu (NASDAQ:FUFU) versus Sprott (NYSE:SII)

BitFuFu (NASDAQ:FUFU) and Sprott (NYSE:SII) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares BitFuFu and Sprott’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BitFuFu	N/A	N/A	N/A
Sprott	26.46%	13.50%	10.67%

Risk and Volatility

BitFuFu has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500. Comparatively, Sprott has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for BitFuFu and Sprott, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BitFuFu	0	0	0	0	N/A
Sprott	0	0	0	1	4.00

Valuation and Earnings

This table compares BitFuFu and Sprott”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BitFuFu	$423.70 million	1.67	$10.49 million	N/A	N/A
Sprott	$169.02 million	6.82	$41.80 million	$1.79	24.91

Sprott has lower revenue, but higher earnings than BitFuFu.

Institutional & Insider Ownership

37.3% of BitFuFu shares are owned by institutional investors. Comparatively, 28.3% of Sprott shares are owned by institutional investors. 35.0% of BitFuFu shares are owned by insiders. Comparatively, 18.3% of Sprott shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Sprott beats BitFuFu on 7 of the 10 factors compared between the two stocks.

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.