BTCS (NASDAQ:BTCS – Get Free Report) and Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
3.5% of BTCS shares are owned by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are owned by institutional investors. 44.3% of BTCS shares are owned by insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
BTCS has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 2.99, indicating that its stock price is 199% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BTCS | 0 | 0 | 1 | 0 | 3.00 |
| Stronghold Digital Mining | 0 | 1 | 1 | 1 | 3.00 |
BTCS currently has a consensus price target of $5.00, suggesting a potential upside of 85.87%. Stronghold Digital Mining has a consensus price target of $6.17, suggesting a potential upside of 89.74%. Given Stronghold Digital Mining’s higher possible upside, analysts clearly believe Stronghold Digital Mining is more favorable than BTCS.
Earnings and Valuation
This table compares BTCS and Stronghold Digital Mining”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BTCS | $1.34 million | 34.17 | $7.82 million | $0.41 | 6.56 |
| Stronghold Digital Mining | $74.97 million | 0.75 | -$71.40 million | ($3.70) | -0.88 |
BTCS has higher earnings, but lower revenue than Stronghold Digital Mining. Stronghold Digital Mining is trading at a lower price-to-earnings ratio than BTCS, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BTCS and Stronghold Digital Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BTCS | 366.80% | -15.42% | -13.77% |
| Stronghold Digital Mining | -11.21% | 13.67% | 3.59% |
Summary
Stronghold Digital Mining beats BTCS on 7 of the 12 factors compared between the two stocks.
About BTCS
BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.
About Stronghold Digital Mining
Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.
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