Analyzing BTCS (NASDAQ:BTCS) and Coinbase Global (NASDAQ:COIN)

BTCS (NASDAQ:BTCS) and Coinbase Global (NASDAQ:COIN) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BTCS and Coinbase Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BTCS	0	0	1	0	3.00
Coinbase Global	3	9	9	0	2.29

BTCS currently has a consensus target price of $3.00, suggesting a potential upside of 96.08%. Coinbase Global has a consensus target price of $192.60, suggesting a potential downside of 13.73%. Given BTCS’s stronger consensus rating and higher probable upside, research analysts clearly believe BTCS is more favorable than Coinbase Global.

Profitability

This table compares BTCS and Coinbase Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BTCS	583.51%	-38.81%	-31.40%
Coinbase Global	33.98%	10.24%	0.39%

Valuation & Earnings

This table compares BTCS and Coinbase Global’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BTCS	$1.34 million	17.93	$7.82 million	$0.56	2.73
Coinbase Global	$3.11 billion	17.40	$94.87 million	$5.01	44.56

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

Volatility and Risk

BTCS has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Coinbase Global has a beta of 3.46, suggesting that its share price is 246% more volatile than the S&P 500.

Insider and Institutional Ownership

3.5% of BTCS shares are owned by institutional investors. Comparatively, 68.8% of Coinbase Global shares are owned by institutional investors. 40.2% of BTCS shares are owned by insiders. Comparatively, 33.2% of Coinbase Global 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.

Summary

Coinbase Global beats BTCS on 9 of the 14 factors compared between the two stocks.

About BTCS

BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.