Critical Comparison: Bitfarms (NASDAQ:BITF) & Coinbase Global (NASDAQ:COIN)

Bitfarms (NASDAQ:BITF) and Coinbase Global (NASDAQ:COIN) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Profitability

This table compares Bitfarms and Coinbase Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-64.06%	-19.24%	-16.04%
Coinbase Global	33.98%	9.42%	0.30%

Institutional and Insider Ownership

20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 68.8% of Coinbase Global shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by company insiders. Comparatively, 23.4% of Coinbase Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Bitfarms and Coinbase Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	0	1	4	0	2.80
Coinbase Global	2	9	9	0	2.35

Bitfarms presently has a consensus price target of $3.88, indicating a potential upside of 45.44%. Coinbase Global has a consensus price target of $215.50, indicating a potential downside of 3.66%. Given Bitfarms’ stronger consensus rating and higher possible upside, research analysts plainly believe Bitfarms is more favorable than Coinbase Global.

Volatility and Risk

Bitfarms has a beta of 3.68, indicating that its stock price is 268% more volatile than the S&P 500. Comparatively, Coinbase Global has a beta of 3.4, indicating that its stock price is 240% more volatile than the S&P 500.

Valuation and Earnings

This table compares Bitfarms and Coinbase Global’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$146.37 million	7.47	-$104.04 million	($0.38)	-7.03
Coinbase Global	$3.11 billion	17.67	$94.87 million	$5.01	44.65

Coinbase Global has higher revenue and earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.

Summary

Coinbase Global beats Bitfarms on 11 of the 14 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.