Coinbase Global (NASDAQ:COIN – Get Free Report) and Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Volatility and Risk
Coinbase Global has a beta of 3.65, suggesting that its share price is 265% more volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 3, suggesting that its share price is 200% more volatile than the S&P 500.
Institutional and Insider Ownership
68.8% of Coinbase Global shares are owned by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are owned by institutional investors. 23.4% of Coinbase Global shares are owned by company insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Coinbase Global | 1 | 8 | 11 | 1 | 2.57 |
| Stronghold Digital Mining | 0 | 1 | 0 | 1 | 3.00 |
Coinbase Global presently has a consensus target price of $285.95, suggesting a potential upside of 39.54%. Stronghold Digital Mining has a consensus target price of $5.00, suggesting a potential upside of 77.94%. Given Stronghold Digital Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Stronghold Digital Mining is more favorable than Coinbase Global.
Profitability
This table compares Coinbase Global and Stronghold Digital Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Coinbase Global | 39.34% | 20.64% | 0.77% |
| Stronghold Digital Mining | -11.21% | 13.67% | 3.59% |
Earnings and Valuation
This table compares Coinbase Global and Stronghold Digital Mining”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Coinbase Global | $6.56 billion | 7.93 | $2.58 billion | $9.50 | 21.57 |
| Stronghold Digital Mining | $79.53 million | 0.61 | -$71.40 million | ($3.70) | -0.76 |
Coinbase Global has higher revenue and earnings than Stronghold Digital Mining. Stronghold Digital Mining is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.
Summary
Coinbase Global beats Stronghold Digital Mining on 11 of the 14 factors compared between the two stocks.
About Coinbase Global
Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.
About Stronghold Digital Mining
Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.
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