Lument Finance Trust (NYSE:LFT) vs. Argo Blockchain (NASDAQ:ARBK) Critical Survey

Argo Blockchain (NASDAQ:ARBK) and Lument Finance Trust (NYSE:LFT) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares Argo Blockchain and Lument Finance Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argo Blockchain	N/A	N/A	N/A
Lument Finance Trust	11.19%	10.20%	1.73%

Volatility and Risk

Argo Blockchain has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500. Comparatively, Lument Finance Trust has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Argo Blockchain and Lument Finance Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argo Blockchain	1	1	0	0	1.50
Lument Finance Trust	1	1	0	0	1.50

Institutional and Insider Ownership

2.4% of Argo Blockchain shares are owned by institutional investors. Comparatively, 19.5% of Lument Finance Trust shares are owned by institutional investors. 2.8% of Lument Finance Trust shares are owned 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.

Valuation and Earnings

This table compares Argo Blockchain and Lument Finance Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argo Blockchain	$47.02 million	0.03	-$55.10 million	($210.87)	-0.02
Lument Finance Trust	$122.13 million	0.61	$22.65 million	$0.10	14.20

Lument Finance Trust has higher revenue and earnings than Argo Blockchain. Argo Blockchain is trading at a lower price-to-earnings ratio than Lument Finance Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Lument Finance Trust beats Argo Blockchain on 10 of the 11 factors compared between the two stocks.

About Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.

About Lument Finance Trust

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate CRE mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.