Critical Contrast: Hut 8 (NASDAQ:HUT) & Digihost Technology (NASDAQ:DGHI)

Digihost Technology (NASDAQ:DGHI) and Hut 8 (NASDAQ:HUT) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Digihost Technology and Hut 8, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digihost Technology	0	0	1	0	3.00
Hut 8	0	0	13	2	3.13

Digihost Technology currently has a consensus target price of $2.50, indicating a potential upside of 83.15%. Hut 8 has a consensus target price of $25.93, indicating a potential upside of 51.36%. Given Digihost Technology’s higher probable upside, analysts clearly believe Digihost Technology is more favorable than Hut 8.

Profitability

This table compares Digihost Technology and Hut 8’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digihost Technology	-41.33%	-36.00%	-25.95%
Hut 8	N/A	N/A	N/A

Volatility & Risk

Digihost Technology has a beta of 5.68, indicating that its share price is 468% more volatile than the S&P 500. Comparatively, Hut 8 has a beta of 4.34, indicating that its share price is 334% more volatile than the S&P 500.

Earnings & Valuation

This table compares Digihost Technology and Hut 8″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digihost Technology	$42.15 million	1.18	-$21.89 million	($0.54)	-2.53
Hut 8	$254.83 million	7.01	-$186.77 million	N/A	N/A

Digihost Technology has higher earnings, but lower revenue than Hut 8.

Insider and Institutional Ownership

1.9% of Digihost Technology shares are owned by institutional investors. Comparatively, 31.8% of Hut 8 shares are owned by institutional investors. 11.2% of Hut 8 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Hut 8 beats Digihost Technology on 10 of the 13 factors compared between the two stocks.

About Digihost Technology

Digihost Technology Inc. operates as a blockchain technology company in the United States and Canada. The company operates through Cryptocurrency Mining, Sales of Energy, and Colocation Services segments. It also mines for cryptocurrency; and supplies energy from power plants. Digihost Technology Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

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.