Coinbase Global (NASDAQ:COIN – Get Free Report) and TeraWulf (NASDAQ:WULF – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
68.8% of Coinbase Global shares are owned by institutional investors. Comparatively, 62.5% of TeraWulf shares are owned by institutional investors. 16.6% of Coinbase Global shares are owned by company insiders. Comparatively, 19.9% of TeraWulf shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Coinbase Global and TeraWulf’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Coinbase Global | 17.55% | 8.68% | 4.36% |
| TeraWulf | -392.64% | -131.48% | -8.64% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Coinbase Global | 3 | 11 | 19 | 0 | 2.48 |
| TeraWulf | 1 | 1 | 12 | 0 | 2.79 |
Coinbase Global presently has a consensus target price of $262.07, suggesting a potential upside of 37.03%. TeraWulf has a consensus target price of $25.31, suggesting a potential upside of 18.76%. Given Coinbase Global’s higher possible upside, research analysts clearly believe Coinbase Global is more favorable than TeraWulf.
Volatility & Risk
Coinbase Global has a beta of 3.38, suggesting that its stock price is 238% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.84, suggesting that its stock price is 284% more volatile than the S&P 500.
Valuation and Earnings
This table compares Coinbase Global and TeraWulf”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Coinbase Global | $7.18 billion | 7.03 | $1.26 billion | $4.39 | 43.56 |
| TeraWulf | $168.46 million | 55.08 | -$661.42 million | ($1.63) | -13.07 |
Coinbase Global has higher revenue and earnings than TeraWulf. TeraWulf is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.
Summary
Coinbase Global beats TeraWulf on 10 of the 14 factors compared between the two stocks.
About Coinbase Global
Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.
About TeraWulf
TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.
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