Financial Analysis: SoundThinking (NASDAQ:SSTI) versus Cleanspark (NASDAQ:CLSK)

SoundThinking (NASDAQ:SSTIGet Free Report) and Cleanspark (NASDAQ:CLSKGet Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

SoundThinking has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Cleanspark has a beta of 3.84, indicating that its share price is 284% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SoundThinking $104.13 million 0.68 -$9.42 million ($1.29) -4.26
Cleanspark $766.31 million 4.95 $364.46 million ($3.77) -3.92

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

Analyst Ratings

This is a summary of recent recommendations and price targets for SoundThinking and Cleanspark, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SoundThinking 1 5 1 0 2.00
Cleanspark 1 1 13 1 2.88

SoundThinking presently has a consensus target price of $10.83, suggesting a potential upside of 97.33%. Cleanspark has a consensus target price of $23.88, suggesting a potential upside of 61.82%. Given SoundThinking’s higher possible upside, equities research analysts plainly believe SoundThinking is more favorable than Cleanspark.

Profitability

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

Net Margins Return on Equity Return on Assets
SoundThinking -16.92% -23.77% -12.90%
Cleanspark -146.90% -18.63% -8.15%

Insider and Institutional Ownership

60.7% of SoundThinking shares are held by institutional investors. Comparatively, 43.1% of Cleanspark shares are held by institutional investors. 10.9% of SoundThinking shares are held by insiders. Comparatively, 2.1% of Cleanspark shares are held 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.

Summary

Cleanspark beats SoundThinking on 10 of the 15 factors compared between the two stocks.

About SoundThinking

(Get Free Report)

SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.

About Cleanspark

(Get Free Report)

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.

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