Bit Digital (NASDAQ:BTBT – Get Free Report) and Applied Digital (NASDAQ:APLD – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Insider and Institutional Ownership
47.7% of Bit Digital shares are owned by institutional investors. Comparatively, 65.7% of Applied Digital shares are owned by institutional investors. 2.0% of Bit Digital shares are owned by insiders. Comparatively, 9.5% of Applied Digital 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.
Risk & Volatility
Bit Digital has a beta of 3.97, meaning that its stock price is 297% more volatile than the S&P 500. Comparatively, Applied Digital has a beta of 5.72, meaning that its stock price is 472% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bit Digital | 1 | 1 | 3 | 0 | 2.40 |
| Applied Digital | 2 | 1 | 11 | 3 | 2.88 |
Bit Digital currently has a consensus price target of $4.38, indicating a potential upside of 174.29%. Applied Digital has a consensus price target of $68.15, indicating a potential upside of 158.49%. Given Bit Digital’s higher possible upside, analysts clearly believe Bit Digital is more favorable than Applied Digital.
Earnings and Valuation
This table compares Bit Digital and Applied Digital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bit Digital | $113.56 million | 5.07 | -$80.32 million | ($1.06) | -1.50 |
| Applied Digital | $611.31 million | 12.57 | -$244.00 million | ($0.89) | -29.62 |
Bit Digital has higher earnings, but lower revenue than Applied Digital. Applied Digital is trading at a lower price-to-earnings ratio than Bit Digital, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bit Digital and Applied Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bit Digital | -237.19% | -10.66% | -6.81% |
| Applied Digital | -37.78% | -16.42% | -4.00% |
Summary
Applied Digital beats Bit Digital on 11 of the 15 factors compared between the two stocks.
About Bit Digital
Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
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