Adeia (NASDAQ:ADEA – Get Free Report) and Hut 8 (NASDAQ:HUT – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Risk & Volatility
Adeia has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Hut 8 has a beta of 4.62, suggesting that its share price is 362% more volatile than the S&P 500.
Valuation & Earnings
This table compares Adeia and Hut 8″s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adeia | $443.39 million | 6.30 | $111.07 million | $1.08 | 23.46 |
| Hut 8 | $235.12 million | 45.27 | -$226.15 million | ($5.45) | -15.85 |
Adeia has higher revenue and earnings than Hut 8. Hut 8 is trading at a lower price-to-earnings ratio than Adeia, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
97.4% of Adeia shares are held by institutional investors. Comparatively, 31.8% of Hut 8 shares are held by institutional investors. 2.0% of Adeia shares are held by company insiders. Comparatively, 10.4% of Hut 8 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings for Adeia and Hut 8, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adeia | 0 | 1 | 5 | 0 | 2.83 |
| Hut 8 | 1 | 1 | 19 | 3 | 3.00 |
Adeia presently has a consensus price target of $37.60, indicating a potential upside of 48.38%. Hut 8 has a consensus price target of $143.95, indicating a potential upside of 66.69%. Given Hut 8’s stronger consensus rating and higher possible upside, analysts clearly believe Hut 8 is more favorable than Adeia.
Profitability
This table compares Adeia and Hut 8’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adeia | 26.05% | 39.26% | 17.50% |
| Hut 8 | -188.59% | -0.97% | -0.36% |
Summary
Adeia beats Hut 8 on 8 of the 15 factors compared between the two stocks.
About Adeia
Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, California.
About Hut 8
Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.
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