Head to Head Comparison: BIT Mining (NYSE:BTCM) and trivago (NASDAQ:TRVG)

trivago (NASDAQ:TRVG) and BIT Mining (NYSE:BTCM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

trivago has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, BIT Mining has a beta of 2.76, indicating that its stock price is 176% more volatile than the S&P 500.

Profitability

This table compares trivago and BIT Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
trivago	-5.20%	0.09%	0.06%
BIT Mining	N/A	N/A	N/A

Institutional & Insider Ownership

4.5% of trivago shares are owned by institutional investors. Comparatively, 5.3% of BIT Mining shares are owned by institutional investors. 6.5% of trivago shares are owned by insiders. Comparatively, 19.7% of BIT Mining 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for trivago and BIT Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
trivago	0	4	1	0	2.20
BIT Mining	0	1	0	0	2.00

trivago presently has a consensus price target of $2.94, indicating a potential downside of 9.54%. Given trivago’s stronger consensus rating and higher possible upside, research analysts clearly believe trivago is more favorable than BIT Mining.

Earnings and Valuation

This table compares trivago and BIT Mining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
trivago	$460.85 million	0.49	-$25.64 million	($0.01)	-325.00
BIT Mining	$32.92 million	0.60	-$28.71 million	($1.31)	-1.01

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

Summary

trivago beats BIT Mining on 8 of the 14 factors compared between the two stocks.

About trivago

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.

About BIT Mining

BIT Mining Limited operates as a cryptocurrency mining company in the Mainland China, the United States, and Hong Kong. The company operates in two segments: Data Center and Cryptocurrency Mining. It operates a cryptocurrency mining data center in Ohio with power capacity of 82.5 megawatts; and purchases and deploys bitcoin mining machines. In addition, it engages in online gaming activities; and provision of technology services. The company was formerly known as 500.com Limited and changed its name to BIT Mining Limited in April 2021. BIT Mining Limited was founded in 2001 and is based in Akron, Ohio.