Contrasting Quhuo (NASDAQ:QH) & Bit Digital (NASDAQ:BTBT)

Bit Digital (NASDAQ:BTBT) and Quhuo (NASDAQ:QH) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Profitability

This table compares Bit Digital and Quhuo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bit Digital	127.61%	-7.11%	-6.23%
Quhuo	N/A	N/A	N/A

Insider & Institutional Ownership

47.7% of Bit Digital shares are owned by institutional investors. Comparatively, 0.2% of Quhuo shares are owned by institutional investors. 1.8% of Bit Digital shares are owned by insiders. Comparatively, 33.1% of Quhuo shares are owned by 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.

Risk and Volatility

Bit Digital has a beta of 3.93, suggesting that its share price is 293% more volatile than the S&P 500. Comparatively, Quhuo has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bit Digital and Quhuo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bit Digital	0	2	1	0	2.33
Quhuo	1	0	0	0	1.00

Bit Digital currently has a consensus target price of $6.00, suggesting a potential upside of 257.14%. Given Bit Digital’s stronger consensus rating and higher possible upside, research analysts clearly believe Bit Digital is more favorable than Quhuo.

Valuation and Earnings

This table compares Bit Digital and Quhuo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bit Digital	$162.71 million	3.34	$28.31 million	$0.42	4.00
Quhuo	$2.56 billion	0.00	$370,000.00	N/A	N/A

Bit Digital has higher earnings, but lower revenue than Quhuo.

Summary

Bit Digital beats Quhuo on 8 of the 12 factors compared between the two stocks.

About Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.

About Quhuo

Quhuo Limited, through its subsidiaries, operates a gig economy platform in the People’s Republic of China. The company offers on-demand delivery solutions focusing on preparing food and deliver of other items, such as grocery and fresh food; and mobility services solutions comprise ride-hailing solutions, shared-bike maintenance, freight service, and vehicle export solutions. It also provides housekeeping solutions for hotels and other services, including maintenance services for short-term rental properties. In addition, the company offers Quhuo+, a logistics support and training software, as well as to manage delivery riders. Further, it engages in the development of computer software and applications; and bed and breakfast operations. The company was founded in 2012 and is based in Beijing, the People’s Republic of China.