Comparing Skillsoft (NYSE:SKIL) & Digi Power X (NASDAQ:DGXX)

Digi Power X (NASDAQ:DGXX) and Skillsoft (NYSE:SKIL) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Profitability

This table compares Digi Power X and Skillsoft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digi Power X	-39.25%	-47.17%	-35.44%
Skillsoft	-26.02%	40.31%	2.05%

Analyst Recommendations

This is a breakdown of current recommendations for Digi Power X and Skillsoft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digi Power X	1	0	2	0	2.33
Skillsoft	1	1	0	0	1.50

Digi Power X currently has a consensus target price of $4.00, suggesting a potential upside of 71.67%. Given Digi Power X’s stronger consensus rating and higher probable upside, research analysts clearly believe Digi Power X is more favorable than Skillsoft.

Valuation and Earnings

This table compares Digi Power X and Skillsoft”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digi Power X	$37.00 million	2.89	-$6.80 million	($0.42)	-5.55
Skillsoft	$530.99 million	0.06	-$121.91 million	($15.84)	-0.23

Digi Power X has higher earnings, but lower revenue than Skillsoft. Digi Power X is trading at a lower price-to-earnings ratio than Skillsoft, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Digi Power X has a beta of 5.84, indicating that its stock price is 484% more volatile than the S&P 500. Comparatively, Skillsoft has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.

Insider and Institutional Ownership

1.9% of Digi Power X shares are owned by institutional investors. Comparatively, 87.0% of Skillsoft shares are owned by institutional investors. 15.5% of Skillsoft shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

About Digi Power X

Digihost Technology Inc. operates as a blockchain technology company that focuses on digital currency mining in the United States. It mines for cryptocurrency. The company was incorporated in 2017 and is headquartered in Toronto, Canada.

About Skillsoft

Skillsoft Corp. provides content and platform and instructor-led training services in the United States and internationally. The company's Content & Platform segment engages in the sale, marketing, and delivery of its content learning solutions in areas, such as leadership and business, technology and developer, and compliance comprising individualized coaching, as well as technical skill areas. This segment also offers Percipio, an AI-driven online learning platform that delivers a learning experience through SaaS solutions. Its Instructor-Led Training segment provides training solutions, including information technology and business skills for corporations and their employees by guiding its customers throughout their lifelong technology learning journey by offering relevant and up-to-date skills training through instructor-led and self-paced, vendor certified, and other proprietary offerings. The company markets and sells their offerings to businesses of many sizes, government agencies, educational institutions, and resellers. Skillsoft Corp. is headquartered in Greenwood Village, Colorado.