Contrasting CleanSpark (NASDAQ:CLSK) and MGT Capital Investments (OTCMKTS:MGTI)

CleanSpark (NASDAQ:CLSK) and MGT Capital Investments (OTCMKTS:MGTI) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Risk and Volatility

CleanSpark has a beta of 4.3, suggesting that its stock price is 330% more volatile than the S&P 500. Comparatively, MGT Capital Investments has a beta of 3.36, suggesting that its stock price is 236% more volatile than the S&P 500.

Profitability

This table compares CleanSpark and MGT Capital Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CleanSpark	-38.09%	-16.25%	-14.85%
MGT Capital Investments	-1,888.47%	-202.89%	-598.61%

Institutional & Insider Ownership

43.1% of CleanSpark shares are owned by institutional investors. 3.5% of CleanSpark shares are owned by insiders. Comparatively, 3.8% of MGT Capital Investments shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for CleanSpark and MGT Capital Investments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CleanSpark	0	1	5	0	2.83
MGT Capital Investments	0	0	0	0	N/A

CleanSpark currently has a consensus price target of $19.22, suggesting a potential upside of 16.18%. Given CleanSpark’s higher possible upside, equities analysts plainly believe CleanSpark is more favorable than MGT Capital Investments.

Earnings & Valuation

This table compares CleanSpark and MGT Capital Investments’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CleanSpark	$168.41 million	19.45	-$136.59 million	N/A	N/A
MGT Capital Investments	$400,000.00	3.30	-$6.13 million	N/A	N/A

MGT Capital Investments has lower revenue, but higher earnings than CleanSpark.

Summary

CleanSpark beats MGT Capital Investments on 9 of the 11 factors compared between the two stocks.

About CleanSpark

CleanSpark, Inc. operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. It also leases space to other bitcoin miners; and provides hosting services for owners of mining equipment. The company was incorporated in 1977 and is headquartered in Raleigh, North Carolina.