Cipher Mining (NASDAQ:CIFR – Get Free Report) and LM Funding America (NASDAQ:LMFA – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.
Risk and Volatility
Cipher Mining has a beta of 2.41, indicating that its stock price is 141% more volatile than the S&P 500. Comparatively, LM Funding America has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Cipher Mining and LM Funding America, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cipher Mining | 0 | 0 | 10 | 2 | 3.17 |
| LM Funding America | 0 | 1 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares Cipher Mining and LM Funding America”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cipher Mining | $126.84 million | 16.19 | -$25.78 million | ($0.13) | -45.42 |
| LM Funding America | $12.98 million | 0.76 | -$15.94 million | ($4.91) | -0.39 |
LM Funding America has lower revenue, but higher earnings than Cipher Mining. Cipher Mining is trading at a lower price-to-earnings ratio than LM Funding America, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
12.3% of Cipher Mining shares are held by institutional investors. Comparatively, 22.7% of LM Funding America shares are held by institutional investors. 2.3% of Cipher Mining shares are held by company insiders. Comparatively, 36.1% of LM Funding America shares are held 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 Cipher Mining and LM Funding America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cipher Mining | -33.39% | -8.29% | -7.29% |
| LM Funding America | -96.23% | -35.84% | -31.86% |
Summary
Cipher Mining beats LM Funding America on 11 of the 15 factors compared between the two stocks.
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.
About LM Funding America
LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.
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