Comparing Cleanspark (NASDAQ:CLSK) and Galaxy Digital (NASDAQ:GLXY)

Cleanspark (NASDAQ:CLSK) and Galaxy Digital (NASDAQ:GLXY) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Profitability

This table compares Cleanspark and Galaxy Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cleanspark	-67.66%	7.07%	3.77%
Galaxy Digital	-0.54%	-2.30%	-0.64%

Valuation and Earnings

This table compares Cleanspark and Galaxy Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cleanspark	$766.31 million	4.02	$364.46 million	($2.10)	-5.72
Galaxy Digital	$61.36 billion	0.12	-$241.35 million	($0.48)	-38.04

Cleanspark has higher earnings, but lower revenue than Galaxy Digital. Galaxy Digital is trading at a lower price-to-earnings ratio than Cleanspark, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Cleanspark has a beta of 3.83, indicating that its stock price is 283% more volatile than the S&P 500. Comparatively, Galaxy Digital has a beta of 4.84, indicating that its stock price is 384% more volatile than the S&P 500.

Insider & Institutional Ownership

43.1% of Cleanspark shares are held by institutional investors. 2.1% of Cleanspark shares are held by insiders. Comparatively, 51.5% of Galaxy Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Cleanspark and Galaxy Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cleanspark	1	1	13	1	2.88
Galaxy Digital	2	2	11	0	2.60

Cleanspark currently has a consensus price target of $23.35, indicating a potential upside of 94.39%. Galaxy Digital has a consensus price target of $39.62, indicating a potential upside of 116.95%. Given Galaxy Digital’s higher probable upside, analysts clearly believe Galaxy Digital is more favorable than Cleanspark.

Summary

Cleanspark beats Galaxy Digital on 9 of the 15 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 Galaxy Digital

Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.