Bitfarms (NASDAQ:BITF – Get Free Report) and Zapata Quantum (OTCMKTS:ZPTA – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
Insider and Institutional Ownership
20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 51.2% of Zapata Quantum shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by insiders. Comparatively, 39.3% of Zapata Quantum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Bitfarms has a beta of 3.77, meaning that its share price is 277% more volatile than the S&P 500. Comparatively, Zapata Quantum has a beta of 20.94, meaning that its share price is 1,994% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bitfarms | $229.28 million | 9.52 | -$138.65 million | ($0.23) | -15.74 |
| Zapata Quantum | $3.88 million | 23.63 | $9.34 million | ($0.02) | -24.47 |
Zapata Quantum has lower revenue, but higher earnings than Bitfarms. Zapata Quantum is trading at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Bitfarms and Zapata Quantum, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bitfarms | 1 | 1 | 4 | 0 | 2.50 |
| Zapata Quantum | 0 | 0 | 0 | 1 | 4.00 |
Bitfarms currently has a consensus price target of $4.67, suggesting a potential upside of 29.14%. Given Bitfarms’ higher possible upside, equities research analysts plainly believe Bitfarms is more favorable than Zapata Quantum.
Profitability
This table compares Bitfarms and Zapata Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bitfarms | -48.26% | -4.48% | -3.71% |
| Zapata Quantum | N/A | -7.23% | -3.10% |
Summary
Zapata Quantum beats Bitfarms on 10 of the 15 factors compared between the two stocks.
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.
About Zapata Quantum
Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.
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