Digihost Technology (NASDAQ:DGHI – Get Free Report) and Cipher Mining (NASDAQ:CIFR – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
1.9% of Digihost Technology shares are owned by institutional investors. Comparatively, 12.3% of Cipher Mining shares are owned by institutional investors. 2.3% of Cipher Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Digihost Technology and Cipher Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digihost Technology | -27.10% | -26.99% | -20.02% |
| Cipher Mining | -33.39% | -8.29% | -7.29% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digihost Technology | 0 | 0 | 1 | 0 | 3.00 |
| Cipher Mining | 0 | 0 | 8 | 2 | 3.20 |
Digihost Technology currently has a consensus target price of $2.50, suggesting a potential upside of 33.69%. Cipher Mining has a consensus target price of $7.72, suggesting a potential upside of 16.42%. Given Digihost Technology’s higher possible upside, research analysts clearly believe Digihost Technology is more favorable than Cipher Mining.
Risk and Volatility
Digihost Technology has a beta of 5.25, meaning that its share price is 425% more volatile than the S&P 500. Comparatively, Cipher Mining has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500.
Earnings & Valuation
This table compares Digihost Technology and Cipher Mining”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digihost Technology | $38.33 million | 1.61 | -$21.89 million | ($0.33) | -5.67 |
| Cipher Mining | $152.47 million | 15.12 | -$25.78 million | ($0.13) | -51.00 |
Digihost Technology has higher earnings, but lower revenue than Cipher Mining. Cipher Mining is trading at a lower price-to-earnings ratio than Digihost Technology, indicating that it is currently the more affordable of the two stocks.
Summary
Cipher Mining beats Digihost Technology on 10 of the 15 factors compared between the two stocks.
About Digihost Technology
Digihost Technology Inc. operates as a blockchain technology company in the United States and Canada. The company operates through Cryptocurrency Mining, Sales of Energy, and Colocation Services segments. It also mines for cryptocurrency; and supplies energy from power plants. Digihost Technology Inc. was incorporated in 2017 and is headquartered in Houston, Texas.
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.
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