Head-To-Head Analysis: Bitfarms (NASDAQ:BITF) vs. Alphabet (NASDAQ:GOOGL)

Bitfarms (NASDAQ:BITFGet Rating) and Alphabet (NASDAQ:GOOGLGet Rating) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Profitability

This table compares Bitfarms and Alphabet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bitfarms 13.06% 9.38% 7.80%
Alphabet 27.57% 30.18% 21.31%

Earnings & Valuation

This table compares Bitfarms and Alphabet’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bitfarms $169.49 million 2.56 $22.13 million $0.10 21.80
Alphabet $257.64 billion 5.78 $76.03 billion $110.56 20.37

Alphabet has higher revenue and earnings than Bitfarms. Alphabet is trading at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

17.2% of Bitfarms shares are owned by institutional investors. Comparatively, 41.7% of Alphabet shares are owned by institutional investors. 11.7% of Alphabet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Bitfarms and Alphabet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitfarms 0 0 1 0 3.00
Alphabet 0 1 33 1 3.00

Bitfarms currently has a consensus target price of $8.00, indicating a potential upside of 268.66%. Alphabet has a consensus target price of $3,351.83, indicating a potential upside of 48.47%. Given Bitfarms’ higher probable upside, research analysts plainly believe Bitfarms is more favorable than Alphabet.

Summary

Alphabet beats Bitfarms on 11 of the 13 factors compared between the two stocks.

Bitfarms Company Profile (Get Rating)

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in North America. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is headquartered in Toronto, Canada.

Alphabet Company Profile (Get Rating)

Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment offers products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play store; and Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Cloud segment offers infrastructure, platform, and other services; Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells health technology and internet services. The company was founded in 1998 and is headquartered in Mountain View, California.

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