Financial Survey: Applied Digital (APLD) & Its Rivals

Applied Digital (NASDAQ:APLD) is one of 273 publicly-traded companies in the “IT Services” industry, but how does it contrast to its rivals? We will compare Applied Digital to similar businesses based on the strength of its earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Applied Digital and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Digital	2	2	12	3	2.84
Applied Digital Competitors	2014	5689	9515	344	2.47

Applied Digital currently has a consensus price target of $56.42, suggesting a potential upside of 253.27%. As a group, “IT Services” companies have a potential upside of 24.06%. Given Applied Digital’s stronger consensus rating and higher probable upside, research analysts plainly believe Applied Digital is more favorable than its rivals.

Earnings & Valuation

This table compares Applied Digital and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Applied Digital	$611.31 million	-$244.00 million	-9.74
Applied Digital Competitors	$3.32 billion	$223.00 million	-20.16

Applied Digital’s rivals have higher revenue and earnings than Applied Digital. Applied Digital is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

65.7% of Applied Digital shares are held by institutional investors. Comparatively, 36.4% of shares of all “IT Services” companies are held by institutional investors. 9.5% of Applied Digital shares are held by company insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Applied Digital and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Digital	-51.28%	-27.21%	-5.23%
Applied Digital Competitors	-191.45%	-32.71%	-8.33%

Risk & Volatility

Applied Digital has a beta of 5.58, indicating that its share price is 458% more volatile than the S&P 500. Comparatively, Applied Digital’s rivals have a beta of 2.15, indicating that their average share price is 115% more volatile than the S&P 500.

Summary

Applied Digital beats its rivals on 10 of the 13 factors compared.

Applied Digital Company Profile

Applied Digital Corporation develops, builds and operates data centers designed for high-density computing. Its facilities support digital asset mining as well as high-performance computing workloads, including artificial intelligence applications, and the company provides hosting and infrastructure services to customers in these sectors. The company also offers cloud services that give customers access to computing capacity for demanding workloads. Its data center operations are focused in the United States, including facilities in North Dakota.