LM Funding America (NASDAQ:LMFA) and Core Scientific (NASDAQ:CORZ) Critical Comparison

Core Scientific (NASDAQ:CORZ) and LM Funding America (NASDAQ:LMFA) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Valuation and Earnings

This table compares Core Scientific and LM Funding America”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core Scientific	$510.67 million	10.83	$46.51 million	$0.15	118.93
LM Funding America	$11.00 million	0.36	-$7.32 million	($2.30)	-0.14

Core Scientific has higher revenue and earnings than LM Funding America. LM Funding America is trading at a lower price-to-earnings ratio than Core Scientific, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Core Scientific and LM Funding America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core Scientific	2	5	13	1	2.62
LM Funding America	1	0	1	0	2.00

Core Scientific currently has a consensus target price of $23.69, indicating a potential upside of 32.82%. LM Funding America has a consensus target price of $5.00, indicating a potential upside of 1,430.46%. Given LM Funding America’s higher probable upside, analysts plainly believe LM Funding America is more favorable than Core Scientific.

Insider and Institutional Ownership

22.7% of LM Funding America shares are held by institutional investors. 1.4% of Core Scientific shares are held by company insiders. Comparatively, 15.0% of LM Funding America shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Core Scientific and LM Funding America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core Scientific	N/A	N/A	N/A
LM Funding America	-83.44%	-30.25%	-23.87%

Volatility & Risk

Core Scientific has a beta of 6.86, meaning that its share price is 586% more volatile than the S&P 500. Comparatively, LM Funding America has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500.

Summary

Core Scientific beats LM Funding America on 12 of the 15 factors compared between the two stocks.

About Core Scientific

Core Scientific, Inc. provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment. In addition, the company provides electrical power, repair, and other infrastructure services to operate, maintain, and earn digital assets; and sells mining equipment to customers. Core Scientific, Inc. was founded in 2017 and is headquartered in Dover, Delaware.

About LM Funding America

LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.