Contrasting CNFinance (NYSE:CNF) & Stronghold Digital Mining (NASDAQ:SDIG)

Stronghold Digital Mining (NASDAQ:SDIG) and CNFinance (NYSE:CNF) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Stronghold Digital Mining and CNFinance’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stronghold Digital Mining	$74.97 million	0.87	-$71.40 million	($4.72)	-0.90
CNFinance	$246.31 million	0.46	$23.26 million	$0.31	5.35

CNFinance has higher revenue and earnings than Stronghold Digital Mining. Stronghold Digital Mining is trading at a lower price-to-earnings ratio than CNFinance, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Stronghold Digital Mining has a beta of 2.63, meaning that its share price is 163% more volatile than the S&P 500. Comparatively, CNFinance has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.

Profitability

This table compares Stronghold Digital Mining and CNFinance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stronghold Digital Mining	3.58%	27.19%	9.94%
CNFinance	9.40%	4.04%	1.09%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Stronghold Digital Mining and CNFinance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stronghold Digital Mining	0	0	2	0	3.00
CNFinance	0	0	0	0	N/A

Stronghold Digital Mining currently has a consensus price target of $7.83, suggesting a potential upside of 85.19%. Given Stronghold Digital Mining’s higher possible upside, analysts plainly believe Stronghold Digital Mining is more favorable than CNFinance.

Institutional & Insider Ownership

19.3% of Stronghold Digital Mining shares are held by institutional investors. 47.6% of Stronghold Digital Mining shares are held by insiders. Comparatively, 25.8% of CNFinance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Stronghold Digital Mining beats CNFinance on 8 of the 13 factors compared between the two stocks.

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.

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates approximately 87 branches and sub-branches in China. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.