Critical Contrast: Hut 8 (NASDAQ:HUT) & Mr. Cooper Group (NASDAQ:COOP)

Hut 8 (NASDAQ:HUT) and Mr. Cooper Group (NASDAQ:COOP) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Hut 8 and Mr. Cooper Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$115.90 million	6.83	-$186.77 million	($2.75)	-3.22
Mr. Cooper Group	$1.79 billion	2.93	$500.00 million	$9.55	8.51

Mr. Cooper Group has higher revenue and earnings than Hut 8. Hut 8 is trading at a lower price-to-earnings ratio than Mr. Cooper Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Hut 8 has a beta of 3.98, suggesting that its stock price is 298% more volatile than the S&P 500. Comparatively, Mr. Cooper Group has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Insider & Institutional Ownership

31.8% of Hut 8 shares are owned by institutional investors. Comparatively, 89.8% of Mr. Cooper Group shares are owned by institutional investors. 2.3% of Mr. Cooper Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Hut 8 and Mr. Cooper Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hut 8	-184.31%	-24.58%	-20.69%
Mr. Cooper Group	31.75%	13.31%	4.09%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hut 8 and Mr. Cooper Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	1	1	4	0	2.50
Mr. Cooper Group	0	1	7	0	2.88

Hut 8 presently has a consensus price target of $12.33, indicating a potential upside of 39.36%. Mr. Cooper Group has a consensus price target of $82.22, indicating a potential upside of 1.20%. Given Hut 8’s higher possible upside, equities research analysts clearly believe Hut 8 is more favorable than Mr. Cooper Group.

Summary

Mr. Cooper Group beats Hut 8 on 11 of the 14 factors compared between the two stocks.

About Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.

About Mr. Cooper Group

Mr. Cooper Group Inc., together with its subsidiaries, operates as a non-bank servicer of residential mortgage loans in the United States. The company operates through Servicing and Originations segments. The Servicing segment performs activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans, performing collections, foreclosures, and the sale of real estate owned. The Originations segment originates residential mortgage loans through its direct-to-consumer and correspondent channels. The company provides its services under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.