Critical Contrast: Stagwell (NASDAQ:STGW) versus Abits Group (NASDAQ:ABTS)

Stagwell (NASDAQ:STGW) and Abits Group (NASDAQ:ABTS) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Institutional and Insider Ownership

35.6% of Stagwell shares are held by institutional investors. Comparatively, 0.2% of Abits Group shares are held by institutional investors. 3.8% of Stagwell shares are held by company insiders. Comparatively, 6.7% of Abits Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Stagwell and Abits Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stagwell	1	3	3	0	2.29
Abits Group	1	0	0	0	1.00

Stagwell presently has a consensus target price of $8.17, indicating a potential upside of 69.90%. Given Stagwell’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Stagwell is more favorable than Abits Group.

Earnings and Valuation

This table compares Stagwell and Abits Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stagwell	$2.84 billion	0.44	$2.26 million	N/A	N/A
Abits Group	$6.71 million	2.75	-$910,000.00	N/A	N/A

Stagwell has higher revenue and earnings than Abits Group.

Profitability

This table compares Stagwell and Abits Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stagwell	-0.06%	14.54%	2.79%
Abits Group	N/A	N/A	N/A

Risk & Volatility

Stagwell has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Abits Group has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500.

Summary

Stagwell beats Abits Group on 8 of the 12 factors compared between the two stocks.

About Stagwell

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.

About Abits Group

Abits Group Inc. operates in the bitcoin mining business in the United States. The company was formerly known as Moxian (BVI) Inc and changed its name to Abits Group Inc. in November 2023. Abits Group Inc. was incorporated in 2021 and is based in Causeway Bay, Hong Kong.