Critical Review: BitFuFu (FUFU) vs. Its Peers

BitFuFu (NASDAQ:FUFU) is one of 111 public companies in the “Nondepository credit institutions” industry, but how does it weigh in compared to its peers? We will compare BitFuFu to similar businesses based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for BitFuFu and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BitFuFu	0	0	1	0	3.00
BitFuFu Competitors	499	1927	3078	118	2.50

BitFuFu currently has a consensus target price of $7.00, suggesting a potential upside of 67.46%. As a group, “Nondepository credit institutions” companies have a potential upside of 43.86%. Given BitFuFu’s stronger consensus rating and higher probable upside, equities analysts plainly believe BitFuFu is more favorable than its peers.

Profitability

This table compares BitFuFu and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BitFuFu	8.17%	40.15%	13.55%
BitFuFu Competitors	-95.01%	-19.90%	-3.72%

Institutional and Insider Ownership

37.3% of BitFuFu shares are held by institutional investors. Comparatively, 34.5% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 35.0% of BitFuFu shares are held by company insiders. Comparatively, 22.0% of shares of all “Nondepository credit institutions” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares BitFuFu and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BitFuFu	$463.33 million	$10.49 million	11.94
BitFuFu Competitors	$3.31 billion	$453.49 million	6.32

BitFuFu’s peers have higher revenue and earnings than BitFuFu. BitFuFu is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

BitFuFu has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, BitFuFu’s peers have a beta of 5.25, indicating that their average stock price is 425% more volatile than the S&P 500.

Summary

BitFuFu beats its peers on 9 of the 13 factors compared.

BitFuFu Company Profile

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.