Head-To-Head Contrast: Sigma Lithium (NASDAQ:SGML) versus DeFi Technologies (OTC:DEFTF)

DeFi Technologies (OTC:DEFTF) and Sigma Lithium (NASDAQ:SGML) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Institutional and Insider Ownership

64.9% of Sigma Lithium shares are held by institutional investors. 48.6% of Sigma Lithium shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares DeFi Technologies and Sigma Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DeFi Technologies	N/A	184.49%	13.66%
Sigma Lithium	-36.85%	-38.04%	-13.30%

Analyst Ratings

This is a summary of current ratings for DeFi Technologies and Sigma Lithium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeFi Technologies	0	0	0	3	4.00
Sigma Lithium	0	0	2	0	3.00

Sigma Lithium has a consensus price target of $18.00, suggesting a potential upside of 144.23%. Given Sigma Lithium’s higher possible upside, analysts clearly believe Sigma Lithium is more favorable than DeFi Technologies.

Valuation and Earnings

This table compares DeFi Technologies and Sigma Lithium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DeFi Technologies	$7.67 million	78.27	-$15.03 million	$0.17	10.82
Sigma Lithium	$208.75 million	3.93	-$28.33 million	($0.47)	-15.68

DeFi Technologies has higher earnings, but lower revenue than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than DeFi Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

DeFi Technologies beats Sigma Lithium on 9 of the 14 factors compared between the two stocks.

About DeFi Technologies

DeFi Technologies Inc., a technology company, develops and lists exchange traded products in Canada, Bermuda, and the Cayman Islands. The company provides asset management services, such as investment vehicles, indirect exposure to underlying cryptocurrencies, digital asset indexes, and other decentralized finance instruments. It also participates in decentralized blockchain networks by processing data transactions that contribute to network security and stability, governance, and transaction validation. In addition, the company invests in decentralized finance companies in early-stage ventures. Further, it offers node management of decentralized protocols to support governance, security, and transaction validation for their networks. The company was formerly known as Valour Inc. and changed its name to DeFi Technologies Inc. in July 2023. DeFi Technologies Inc. was incorporated in 1986 and is headquartered in Toronto, Canada.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.