Contrasting Cipher Mining (NASDAQ:CIFR) and SBI (OTCMKTS:SBHGF)

Cipher Mining (NASDAQ:CIFR) and SBI (OTCMKTS:SBHGF) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Profitability

This table compares Cipher Mining and SBI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cipher Mining	-20.32%	-6.78%	-5.69%
SBI	7.39%	4.95%	0.37%

Risk & Volatility

Cipher Mining has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500. Comparatively, SBI has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cipher Mining and SBI’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cipher Mining	$126.84 million	11.24	-$25.78 million	($0.10)	-48.10
SBI	$7.39 billion	0.91	$259.00 million	$2.04	12.01

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

Insider & Institutional Ownership

12.3% of Cipher Mining shares are owned by institutional investors. 2.3% of Cipher Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cipher Mining and SBI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cipher Mining	0	1	6	0	2.86
SBI	0	0	0	0	N/A

Cipher Mining currently has a consensus price target of $5.25, suggesting a potential upside of 9.15%. Given Cipher Mining’s higher probable upside, equities analysts clearly believe Cipher Mining is more favorable than SBI.

Summary

SBI beats Cipher Mining on 7 of the 13 factors compared between the two stocks.

About Cipher Mining

Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.

About SBI

SBI Holdings, Inc. engages in the online securities and investment businesses. It operates through five business segments: Financial Services Business, Asset Management Business, Investment Business, Crypto-Asset Business, and Non-financial Business segments. The Financial Services Business segment consists of a range of finance-related business, including securities brokerage business; banking services business; and life, property, and casualty insurance business. The Asset Management Business segment includes setting, solicitation, and management of investment trust; investment advice; and financial products information. The Investment Business segment includes fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies; private equity; and funds management businesses. The Crypto-asset Business segment provides crypto-asset exchange and trading services. The Non-Financial Business segment consists of biotechnology; development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid; research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology; the digitization of medical and health information; provision of solutions and services that promote the use of medical big data, medical finance; business working on advanced fields related to Web 3.0; and renewable energy business. The company is also involved in the real estate secured loans, online mobile game, and e-sports related businesses. In addition, it operates and develops cybersecurity systems; exports used cars; offers back-office support services; and develops, operates, manages, and invests in real estate properties. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.