Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) and Cipher Mining (NASDAQ:CIFR – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Valuation and Earnings
This table compares Stronghold Digital Mining and Cipher Mining”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stronghold Digital Mining | $79.53 million | 0.61 | -$71.40 million | ($3.70) | -0.76 |
| Cipher Mining | $151.27 million | 5.69 | -$25.78 million | ($0.12) | -19.50 |
Cipher Mining has higher revenue and earnings than Stronghold Digital Mining. Cipher Mining is trading at a lower price-to-earnings ratio than Stronghold Digital Mining, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Analyst Recommendations
This is a summary of current ratings and recommmendations for Stronghold Digital Mining and Cipher Mining, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stronghold Digital Mining | 0 | 1 | 0 | 1 | 3.00 |
| Cipher Mining | 0 | 1 | 10 | 2 | 3.08 |
Stronghold Digital Mining currently has a consensus target price of $5.00, suggesting a potential upside of 77.94%. Cipher Mining has a consensus target price of $8.13, suggesting a potential upside of 247.22%. Given Cipher Mining’s stronger consensus rating and higher possible upside, analysts plainly believe Cipher Mining is more favorable than Stronghold Digital Mining.
Profitability
This table compares Stronghold Digital Mining and Cipher Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stronghold Digital Mining | -11.21% | 13.67% | 3.59% |
| Cipher Mining | -33.39% | -8.29% | -7.29% |
Insider and Institutional Ownership
19.3% of Stronghold Digital Mining shares are owned by institutional investors. Comparatively, 12.3% of Cipher Mining shares are owned by institutional investors. 21.1% of Stronghold Digital Mining shares are owned by company insiders. Comparatively, 2.3% of Cipher Mining shares are owned 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.
Summary
Cipher Mining beats Stronghold Digital Mining on 8 of the 15 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 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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