Critical Survey: Applied Digital (APLD) vs. The Competition

Applied Digital (OTCMKTS:APLDGet Rating) is one of 113 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it compare to its rivals? We will compare Applied Digital to similar companies based on the strength of its dividends, analyst recommendations, risk, earnings, institutional ownership, valuation and profitability.

Risk & Volatility

Applied Digital has a beta of 5.05, suggesting that its share price is 405% more volatile than the S&P 500. Comparatively, Applied Digital’s rivals have a beta of 1.26, suggesting that their average share price is 26% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Applied Digital $8.55 million -$23.52 million -4.80
Applied Digital Competitors $7.81 billion $2.05 billion -33.85

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

Profitability

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

Net Margins Return on Equity Return on Assets
Applied Digital -145.35% -24.36% -10.76%
Applied Digital Competitors -154.95% -19.94% -7.12%

Insider and Institutional Ownership

48.4% of Applied Digital shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 28.9% of Applied Digital shares are owned by company insiders. Comparatively, 15.8% of shares of all “Computer programming, data processing, & other computer related” companies are owned 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.

Analyst Ratings

This is a breakdown of recent recommendations for Applied Digital and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Digital 0 0 7 0 3.00
Applied Digital Competitors 772 3902 9169 260 2.63

Applied Digital currently has a consensus price target of $6.31, suggesting a potential upside of 163.10%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 30.89%. Given Applied Digital’s stronger consensus rating and higher probable upside, research analysts plainly believe Applied Digital is more favorable than its rivals.

Summary

Applied Digital beats its rivals on 8 of the 13 factors compared.

About Applied Digital

(Get Rating)

Applied Digital Corp. operates as a technology company, which engages in the development and operation of data centers which provide computing power. The company was founded in May 2001 and is headquartered in Dallas, TX.

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