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 competitors? We will compare BitFuFu to similar businesses based on the strength of its risk, dividends, profitability, analyst recommendations, earnings, valuation and institutional ownership.

Institutional & 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

BitFuFu has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, BitFuFu’s competitors have a beta of 5.13, meaning that their average stock price is 413% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BitFuFu	0	0	1	0	3.00
BitFuFu Competitors	500	1935	3090	118	2.50

BitFuFu presently has a consensus price target of $7.00, suggesting a potential upside of 62.79%. As a group, “Nondepository credit institutions” companies have a potential upside of 42.12%. Given BitFuFu’s stronger consensus rating and higher possible upside, equities research analysts plainly believe BitFuFu is more favorable than its competitors.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
BitFuFu	$463.33 million	$10.49 million	12.29
BitFuFu Competitors	$3.31 billion	$453.49 million	6.20

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

Profitability

This table compares BitFuFu and its competitors’ 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%

Summary

BitFuFu beats its competitors 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.