Critical Survey: Stronghold Digital Mining (NASDAQ:SDIG) vs. Cipher Mining (NASDAQ:CIFR)

Cipher Mining (NASDAQ:CIFRGet Free Report) and Stronghold Digital Mining (NASDAQ:SDIGGet Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

12.3% of Cipher Mining shares are held by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are held by institutional investors. 2.3% of Cipher Mining shares are held by company insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cipher Mining and Stronghold Digital Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cipher Mining 0 1 10 2 3.08
Stronghold Digital Mining 0 1 0 1 3.00

Cipher Mining presently has a consensus target price of $8.13, indicating a potential upside of 247.22%. Stronghold Digital Mining has a consensus target price of $5.00, indicating a potential upside of 77.94%. Given Cipher Mining’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Cipher Mining is more favorable than Stronghold Digital Mining.

Earnings & Valuation

This table compares Cipher Mining and Stronghold Digital Mining”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cipher Mining $151.27 million 5.69 -$25.78 million ($0.12) -19.50
Stronghold Digital Mining $79.53 million 0.61 -$71.40 million ($3.70) -0.76

Cipher Mining has higher revenue and earnings than Stronghold Digital Mining. Cipher Mining is trading at a lower price-to-earnings ratio than Stronghold Digital Mining, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cipher Mining and Stronghold Digital Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cipher Mining -33.39% -8.29% -7.29%
Stronghold Digital Mining -11.21% 13.67% 3.59%

Risk & Volatility

Cipher Mining has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 3, meaning that its share price is 200% more volatile than the S&P 500.

Summary

Cipher Mining beats Stronghold Digital Mining on 8 of the 15 factors compared between the two stocks.

About Cipher Mining

(Get Free Report)

Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.

About Stronghold Digital Mining

(Get Free Report)

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.

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