Bitfarms (NASDAQ:BITF) & Cipher Mining (NASDAQ:CIFR) Financial Review

Cipher Mining (NASDAQ:CIFR) and Bitfarms (NASDAQ:BITF) 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 earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Cipher Mining and Bitfarms, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cipher Mining	0	1	10	2	3.08
Bitfarms	0	1	5	0	2.83

Cipher Mining presently has a consensus price target of $8.13, suggesting a potential upside of 163.80%. Bitfarms has a consensus price target of $3.84, suggesting a potential upside of 285.09%. Given Bitfarms’ higher possible upside, analysts clearly believe Bitfarms is more favorable than Cipher Mining.

Profitability

This table compares Cipher Mining and Bitfarms’ 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%
Bitfarms	-69.08%	-22.17%	-18.93%

Earnings & Valuation

This table compares Cipher Mining and Bitfarms”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cipher Mining	$151.27 million	7.56	-$25.78 million	($0.12)	-25.67
Bitfarms	$192.88 million	2.79	-$104.04 million	($0.14)	-7.13

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

Volatility and Risk

Cipher Mining has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.74, meaning that its share price is 274% more volatile than the S&P 500.

Insider & Institutional Ownership

12.3% of Cipher Mining shares are owned by institutional investors. Comparatively, 20.6% of Bitfarms shares are owned by institutional investors. 2.3% of Cipher Mining shares are owned by company insiders. Comparatively, 9.5% of Bitfarms shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Cipher Mining beats Bitfarms on 9 of the 15 factors compared between the two stocks.

About Cipher Mining

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 Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.