Cipher Mining (NASDAQ:CIFR – Get Free Report) and Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Insider and Institutional Ownership
12.3% of Cipher Mining shares are held by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are held by institutional investors. 2.3% of Cipher Mining shares are held by company insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Cipher Mining and Stronghold Digital Mining”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cipher Mining | $151.27 million | 5.61 | -$25.78 million | ($0.12) | -19.25 |
| Stronghold Digital Mining | $79.53 million | 0.61 | -$71.40 million | ($3.70) | -0.76 |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Cipher Mining and Stronghold Digital Mining, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cipher Mining | 0 | 1 | 10 | 2 | 3.08 |
| Stronghold Digital Mining | 0 | 1 | 0 | 1 | 3.00 |
Cipher Mining presently has a consensus price target of $8.13, indicating a potential upside of 251.73%. Stronghold Digital Mining has a consensus price target of $5.00, indicating a potential upside of 77.94%. Given Cipher Mining’s stronger consensus rating and higher probable upside, analysts clearly believe Cipher Mining is more favorable than Stronghold Digital Mining.
Profitability
This table compares Cipher Mining and Stronghold Digital Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cipher Mining | -33.39% | -8.29% | -7.29% |
| Stronghold Digital Mining | -11.21% | 13.67% | 3.59% |
Risk & Volatility
Cipher Mining has a beta of 2.65, suggesting that its stock price is 165% more volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 3, suggesting that its stock price is 200% more volatile than the S&P 500.
Summary
Cipher Mining beats Stronghold Digital Mining on 8 of the 15 factors compared between the two stocks.
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.
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.
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