Critical Comparison: Bitfarms (NASDAQ:BITF) and Mawson Infrastructure Group (NASDAQ:MIGI)

Bitfarms (NASDAQ:BITF) and Mawson Infrastructure Group (NASDAQ:MIGI) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Bitfarms and Mawson Infrastructure Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-69.08%	-22.17%	-18.93%
Mawson Infrastructure Group	-93.68%	-368.57%	-61.12%

Valuation & Earnings

This table compares Bitfarms and Mawson Infrastructure Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$146.37 million	4.05	-$104.04 million	($0.36)	-3.64
Mawson Infrastructure Group	$43.57 million	0.30	-$60.42 million	($3.16)	-0.22

Mawson Infrastructure Group has lower revenue, but higher earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Mawson Infrastructure Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 6.9% of Mawson Infrastructure Group shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by company insiders. Comparatively, 5.4% of Mawson Infrastructure Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Bitfarms has a beta of 3.64, indicating that its stock price is 264% more volatile than the S&P 500. Comparatively, Mawson Infrastructure Group has a beta of 3.35, indicating that its stock price is 235% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Bitfarms and Mawson Infrastructure Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	0	1	6	0	2.86
Mawson Infrastructure Group	0	2	0	0	2.00

Bitfarms presently has a consensus price target of $4.05, indicating a potential upside of 209.16%. Mawson Infrastructure Group has a consensus price target of $2.00, indicating a potential upside of 188.85%. Given Bitfarms’ stronger consensus rating and higher possible upside, analysts clearly believe Bitfarms is more favorable than Mawson Infrastructure Group.

Summary

Bitfarms beats Mawson Infrastructure Group on 12 of the 14 factors compared between the two stocks.

About Bitfarms

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. The company was founded in 2017 and is based in Toronto, Canada.

About Mawson Infrastructure Group

Mawson Infrastructure Group Inc. develops and operates digital infrastructure for digital currency on the bitcoin blockchain network in the United States. It engages in digital currency or bitcoin self-mining, customer co-location and related services, and energy markets, as well as operates data center facilities. The company is based in Midland, Pennsylvania.