Head to Head Analysis: Digihost Technology (NASDAQ:DGHI) & CNFinance (NYSE:CNF)

CNFinance (NYSE:CNF) and Digihost Technology (NASDAQ:DGHI) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Volatility and Risk

CNFinance has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500. Comparatively, Digihost Technology has a beta of 5.32, suggesting that its stock price is 432% more volatile than the S&P 500.

Institutional and Insider Ownership

1.9% of Digihost Technology shares are held by institutional investors. 25.8% of CNFinance shares are held 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.

Valuation and Earnings

This table compares CNFinance and Digihost Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNFinance	$1.11 billion	0.07	$23.26 million	$0.31	3.55
Digihost Technology	$42.15 million	1.17	-$21.89 million	($0.54)	-2.78

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

Profitability

This table compares CNFinance and Digihost Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNFinance	N/A	N/A	N/A
Digihost Technology	-41.33%	-36.00%	-25.95%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CNFinance and Digihost Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNFinance	0	0	0	0	0.00
Digihost Technology	0	0	1	0	3.00

Digihost Technology has a consensus target price of $2.50, indicating a potential upside of 66.67%. Given Digihost Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Digihost Technology is more favorable than CNFinance.

Summary

CNFinance beats Digihost Technology on 8 of the 14 factors compared between the two stocks.

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates approximately 87 branches and sub-branches in China. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.

About Digihost Technology

Digihost Technology Inc. operates as a blockchain technology company in the United States and Canada. The company operates through Cryptocurrency Mining, Sales of Energy, and Colocation Services segments. It also mines for cryptocurrency; and supplies energy from power plants. Digihost Technology Inc. was incorporated in 2017 and is headquartered in Houston, Texas.