Reviewing Lion Group (NASDAQ:LGHL) and Hut 8 (NASDAQ:HUT)

Hut 8 (NASDAQ:HUT) and Lion Group (NASDAQ:LGHL) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

31.8% of Hut 8 shares are owned by institutional investors. Comparatively, 0.2% of Lion Group shares are owned by institutional investors. 11.2% of Hut 8 shares are owned by company insiders. Comparatively, 8.7% of Lion Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hut 8	-96.18%	-0.77%	-0.48%
Lion Group	N/A	N/A	N/A

Risk & Volatility

Hut 8 has a beta of 4.42, suggesting that its stock price is 342% more volatile than the S&P 500. Comparatively, Lion Group has a beta of 2.8, suggesting that its stock price is 180% more volatile than the S&P 500.

Valuation & Earnings

This table compares Hut 8 and Lion Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$235.12 million	26.23	-$226.15 million	($2.32)	-23.97
Lion Group	$21.09 million	0.00	-$27.45 million	N/A	N/A

Lion Group has lower revenue, but higher earnings than Hut 8.

Analyst Recommendations

This is a breakdown of current ratings for Hut 8 and Lion Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	1	0	16	1	2.94
Lion Group	1	0	0	0	1.00

Hut 8 currently has a consensus target price of $69.71, indicating a potential upside of 25.33%. Given Hut 8’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Hut 8 is more favorable than Lion Group.

Summary

Hut 8 beats Lion Group on 9 of the 13 factors compared between the two stocks.

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.

About Lion Group

Lion Group Holding Ltd., together with its subsidiaries, operates a trading platform for corporate clients, individual traders, and retail investors primarily in the People's Republic of China and Southeast Asia. Its trading platform offers a range of products and services comprising contracts for difference trading, over-the-counter stock options trading, futures and securities brokerage, and total return swap trading services through its Lion Brokers Pro app platform. The company's trading platform allows users to trade various futures products on futures exchanges worldwide, including the Chicago Mercantile Exchange, Singapore Exchange, the Hong Kong Futures Exchange, and Eurex Exchange; stocks listed on the New York Stock Exchange, Nasdaq and Hong Kong Stock Exchange; and the People's Republic of China stocks listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange that are eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs. It markets its products mainly through search engines, social media, app stores, and third-party websites. Lion Group Holding Ltd. was founded in 2015 and is headquartered in Singapore.