Data Storage (OTCMKTS:DTST) & Hut 8 Mining (NASDAQ:HUT) Critical Analysis

Data Storage (OTCMKTS:DTSTGet Rating) and Hut 8 Mining (NASDAQ:HUTGet Rating) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

9.0% of Data Storage shares are held by institutional investors. Comparatively, 15.3% of Hut 8 Mining shares are held by institutional investors. 87.0% of Data Storage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Data Storage and Hut 8 Mining, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Data Storage 0 0 1 0 3.00
Hut 8 Mining 0 0 3 0 3.00

Data Storage presently has a consensus price target of $8.00, indicating a potential upside of 156.41%. Hut 8 Mining has a consensus price target of $7.67, indicating a potential upside of 200.65%. Given Hut 8 Mining’s higher probable upside, analysts plainly believe Hut 8 Mining is more favorable than Data Storage.

Profitability

This table compares Data Storage and Hut 8 Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Data Storage 1.92% 2.02% 1.54%
Hut 8 Mining -27.23% 4.99% 4.40%

Valuation & Earnings

This table compares Data Storage and Hut 8 Mining’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Data Storage $14.88 million 1.40 $270,000.00 $0.05 62.41
Hut 8 Mining $138.64 million 3.21 -$58.02 million ($0.30) -8.50

Data Storage has higher earnings, but lower revenue than Hut 8 Mining. Hut 8 Mining is trading at a lower price-to-earnings ratio than Data Storage, indicating that it is currently the more affordable of the two stocks.

Summary

Hut 8 Mining beats Data Storage on 7 of the 11 factors compared between the two stocks.

Data Storage Company Profile (Get Rating)

Data Storage Corporation provides multi-cloud information technology solutions primarily in the United States. The company offers data protection and disaster recovery solutions; high availability, data vaulting, DRaaS, IaaS, message logic, standby server, support and maintenance and internet solutions. It also provides cybersecurity solutions comprising managed endpoint security with active threat mitigation, system security assessment, and risk analysis services, as well as applications for continuous security and auditing; and voice and data solutions, such as VoIP and data services with fiber optic, coaxial, and wireless networks for businesses to connect from any location. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government sectors. Data Storage Corporation is headquartered in Melville, New York.

Hut 8 Mining Company Profile (Get Rating)

Hut 8 Mining Corp. operates as a cryptocurrency mining company in North America. The company engages in industrial scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta; and 51 BlockBoxes in Medicine Hat, Alberta. Hut 8 Mining Corp. was incorporated in 2011 and is headquartered in Toronto, Canada.

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