Reviewing Bitfarms (NASDAQ:BITF) and Green Dot (NYSE:GDOT)

Bitfarms (NASDAQ:BITFGet Free Report) and Green Dot (NYSE:GDOTGet Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Institutional & Insider Ownership

15.3% of Bitfarms shares are held by institutional investors. Comparatively, 92.1% of Green Dot shares are held by institutional investors. 9.5% of Bitfarms shares are held by company insiders. Comparatively, 2.9% of Green Dot shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Bitfarms and Green Dot, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitfarms 0 0 5 0 3.00
Green Dot 1 3 1 0 2.00

Bitfarms presently has a consensus target price of $4.00, indicating a potential upside of 79.37%. Green Dot has a consensus target price of $12.75, indicating a potential upside of 48.60%. Given Bitfarms’ stronger consensus rating and higher probable upside, research analysts plainly believe Bitfarms is more favorable than Green Dot.

Profitability

This table compares Bitfarms and Green Dot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bitfarms -49.48% -19.17% -15.65%
Green Dot 2.45% 8.51% 1.49%

Risk and Volatility

Bitfarms has a beta of 3.71, suggesting that its share price is 271% more volatile than the S&P 500. Comparatively, Green Dot has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Earnings & Valuation

This table compares Bitfarms and Green Dot’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bitfarms $142.43 million 5.23 -$86.88 million ($0.26) -8.58
Green Dot $1.45 billion 0.31 $64.21 million $0.69 12.43

Green Dot has higher revenue and earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Green Dot, indicating that it is currently the more affordable of the two stocks.

Summary

Green Dot beats Bitfarms on 8 of the 14 factors compared between the two stocks.

About Bitfarms

(Get Free Report)

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. Bitfarms Ltd. was founded in 2017 and is based in Toronto, Canada.

About Green Dot

(Get Free Report)

Green Dot Corporation, a financial technology and bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company offers deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It also provides money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. The company was incorporated in 1999 and is headquartered in Austin, Texas.

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