Critical Analysis: Hut 8 Mining (NASDAQ:HUT) versus CooTek (Cayman) (NYSE:CTK)

Hut 8 Mining (NASDAQ:HUTGet Rating) and CooTek (Cayman) (NYSE:CTKGet Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Hut 8 Mining and CooTek (Cayman), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hut 8 Mining 0 0 3 0 3.00
CooTek (Cayman) 0 0 0 0 N/A

Hut 8 Mining currently has a consensus price target of $14.33, indicating a potential upside of 302.62%. Given Hut 8 Mining’s higher probable upside, equities research analysts plainly believe Hut 8 Mining is more favorable than CooTek (Cayman).

Insider & Institutional Ownership

15.6% of Hut 8 Mining shares are owned by institutional investors. Comparatively, 4.7% of CooTek (Cayman) shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Hut 8 Mining and CooTek (Cayman)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hut 8 Mining $138.64 million 4.47 -$58.02 million ($0.32) -11.13
CooTek (Cayman) $272.15 million 0.04 -$13.88 million ($0.22) -0.77

CooTek (Cayman) has higher revenue and earnings than Hut 8 Mining. Hut 8 Mining is trading at a lower price-to-earnings ratio than CooTek (Cayman), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hut 8 Mining and CooTek (Cayman)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hut 8 Mining -42.38% 5.80% 5.21%
CooTek (Cayman) -4.82% N/A -11.73%

Summary

Hut 8 Mining beats CooTek (Cayman) on 6 of the 10 factors compared between the two stocks.

About Hut 8 Mining (Get Rating)

Hut 8 Mining Corp. operates as a cryptocurrency mining company in North America. The company engages in industrial scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta; and 51 BlockBoxes in Medicine Hat, Alberta. Hut 8 Mining Corp. was incorporated in 2011 and is headquartered in Toronto, Canada.

About CooTek (Cayman) (Get Rating)

CooTek (Cayman) Inc. operates as a mobile internet company in the United States, the People's Republic of China, the United States, and internationally. Its primary product is TouchPal Smart Input, an input method for mobile devices that supports approximately 110 languages. The company also offers Fengdu Novel, a mobile application that provides users with free online novels; Fengdu Audiobooks; and short video series based on Fengdu Literature Platform content and IP resources. In addition, it provides casual games, including simulation games, such as Farm Hero and Idle Land King Tycoon; puzzle games comprising Hi Hamster; and educational games, such as Puzzle No. 1 and Idiom Hero. Further, the company offers fitness applications comprising Walk Walk; Drink Water Reminder that helps users drink an appropriate amount of water on a daily basis; Happy Jogging, a free pedometer mobile application; and Hailaidian, a mobile application that provides pictures, videos, and music to decorate the call interface and help users have fun when receiving phone calls. It distributes its products and acquires users primarily through user downloads from digital distribution platforms and pre-installations on mobile devices. CooTek (Cayman) Inc. was founded in 2008 and is headquartered in Shanghai, the People's Republic of China.

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