Critical Comparison: Mentor Capital (OTCMKTS:MNTR) & TeraWulf (NASDAQ:WULF)

Mentor Capital (OTCMKTS:MNTR) and TeraWulf (NASDAQ:WULF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

62.5% of TeraWulf shares are held by institutional investors. 23.7% of Mentor Capital shares are held by company insiders. Comparatively, 16.5% of TeraWulf shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Mentor Capital and TeraWulf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mentor Capital	N/A	-28.51%	-24.14%
TeraWulf	-94.09%	-42.09%	-19.03%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mentor Capital and TeraWulf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mentor Capital	0	0	0	0	0.00
TeraWulf	0	1	8	2	3.09

TeraWulf has a consensus target price of $7.89, indicating a potential upside of 50.41%. Given TeraWulf’s stronger consensus rating and higher possible upside, analysts plainly believe TeraWulf is more favorable than Mentor Capital.

Valuation & Earnings

This table compares Mentor Capital and TeraWulf”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mentor Capital	$7.71 million	0.14	-$840,000.00	($0.04)	-1.23
TeraWulf	$140.05 million	14.40	-$72.42 million	($0.33)	-15.89

Mentor Capital has higher earnings, but lower revenue than TeraWulf. TeraWulf is trading at a lower price-to-earnings ratio than Mentor Capital, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Mentor Capital has a beta of -0.72, indicating that its stock price is 172% less volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.11, indicating that its stock price is 211% more volatile than the S&P 500.

Summary

TeraWulf beats Mentor Capital on 9 of the 15 factors compared between the two stocks.

About Mentor Capital

Mentor Capital, Inc. is a private equity firm specializing in acquisitions and emerging growth investments. The firm provides passive equity funding and liquidity to smaller companies and owners in the medical, marijuana and social use cannabis companies. It invests in shelf IPO’s and public and private companies and seeks to provide public market access to owners of small private companies. The firm specializes in pre-IPO investments in Cannabis companies. It seeks to invest in energy sector of oil and gas, coal, uranium. In case of shelf IPO’s, the firm prefers to invest in companies with sales greater than $40 million. It prefers to take significant position in its portfolio companies. The firm invests only in companies that have earnings. Mentor Capital, Inc. was founded in 1985 and is based in Plano, Texas.

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.