Burford Capital (NYSE:BUR – Get Free Report) and TeraWulf (NASDAQ:WULF – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Insider and Institutional Ownership
62.5% of TeraWulf shares are owned by institutional investors. 8.9% of Burford Capital shares are owned by company insiders. Comparatively, 24.9% of TeraWulf shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Burford Capital and TeraWulf’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Burford Capital | 34.81% | 8.07% | 4.28% |
| TeraWulf | -41.88% | -15.91% | -11.67% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Burford Capital | $341.23 million | 8.80 | $610.52 million | $0.65 | 21.06 |
| TeraWulf | $140.05 million | 8.20 | -$73.42 million | ($0.20) | -15.00 |
Burford Capital has higher revenue and earnings than TeraWulf. TeraWulf is trading at a lower price-to-earnings ratio than Burford Capital, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Burford Capital and TeraWulf, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Burford Capital | 0 | 0 | 3 | 0 | 3.00 |
| TeraWulf | 0 | 1 | 7 | 2 | 3.10 |
Burford Capital presently has a consensus price target of $19.50, suggesting a potential upside of 42.44%. TeraWulf has a consensus price target of $7.86, suggesting a potential upside of 161.90%. Given TeraWulf’s stronger consensus rating and higher probable upside, analysts clearly believe TeraWulf is more favorable than Burford Capital.
Volatility and Risk
Burford Capital has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.76, indicating that its stock price is 176% more volatile than the S&P 500.
Summary
Burford Capital beats TeraWulf on 8 of the 15 factors compared between the two stocks.
About Burford Capital
Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.
About TeraWulf
TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.
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