Applied Digital (NASDAQ:APLD – Get Free Report) and NantHealth (NASDAQ:NH – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
53.8% of Applied Digital shares are held by institutional investors. Comparatively, 4.5% of NantHealth shares are held by institutional investors. 23.7% of Applied Digital shares are held by company insiders. Comparatively, 61.3% of NantHealth shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Applied Digital has a beta of 4.23, meaning that its share price is 323% more volatile than the S&P 500. Comparatively, NantHealth has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Digital | $55.39 million | 8.21 | -$44.65 million | ($0.54) | -7.93 |
| NantHealth | $67.68 million | 0.04 | -$67.78 million | ($7.65) | -0.05 |
Applied Digital has higher earnings, but lower revenue than NantHealth. Applied Digital is trading at a lower price-to-earnings ratio than NantHealth, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Applied Digital and NantHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Digital | -58.11% | -57.80% | -19.94% |
| NantHealth | -94.67% | N/A | -39.82% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Applied Digital and NantHealth, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Digital | 0 | 0 | 4 | 0 | 3.00 |
| NantHealth | 0 | 0 | 0 | 0 | N/A |
Applied Digital presently has a consensus target price of $14.88, indicating a potential upside of 247.55%. Given Applied Digital’s higher probable upside, equities research analysts plainly believe Applied Digital is more favorable than NantHealth.
Summary
Applied Digital beats NantHealth on 9 of the 13 factors compared between the two stocks.
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
About NantHealth
NantHealth, Inc. engages in the provision of enterprise solutions that help businesses transform complex data into actionable insights. It is also involved in marketing solutions as a comprehensive integrated solution that includes clinical decision support, payer engagement solutions, data analysis, and network monitoring and management. The company was founded by Patrick Soon-Shiong on July 7, 2010 and is headquartered in Morrisville, NC.
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