IREN (IREN) & Its Peers Critical Analysis

IREN (NASDAQ:IREN) is one of 959 publicly-traded companies in the “Software” industry, but how does it contrast to its rivals? We will compare IREN to similar businesses based on the strength of its analyst recommendations, dividends, risk, profitability, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares IREN and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
IREN	$707.01 million	-$702.62 million	-19.09
IREN Competitors	$1.82 billion	$387.52 million	102.50

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

Analyst Recommendations

This is a breakdown of current ratings for IREN and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IREN	2	3	15	1	2.71
IREN Competitors	5484	21117	44061	1449	2.58

IREN presently has a consensus target price of $81.57, indicating a potential upside of 82.57%. As a group, “Software” companies have a potential upside of 275.84%. Given IREN’s rivals higher probable upside, analysts plainly believe IREN has less favorable growth aspects than its rivals.

Risk and Volatility

IREN has a beta of 4.28, suggesting that its stock price is 328% more volatile than the S&P 500. Comparatively, IREN’s rivals have a beta of 1.19, suggesting that their average stock price is 19% more volatile than the S&P 500.

Institutional & Insider Ownership

41.1% of IREN shares are held by institutional investors. Comparatively, 42.3% of shares of all “Software” companies are held by institutional investors. 5.0% of IREN shares are held by company insiders. Comparatively, 19.8% of shares of all “Software” companies are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IREN	-99.38%	-15.46%	-5.51%
IREN Competitors	-629.75%	30.38%	-8.95%

Summary

IREN rivals beat IREN on 7 of the 13 factors compared.

IREN Company Profile

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.