Critical Analysis: BOX (NYSE:BOX) & Bitfarms (NASDAQ:BITF)

Bitfarms (NASDAQ:BITF) and BOX (NYSE:BOX) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Bitfarms and BOX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-48.26%	-4.48%	-3.71%
BOX	N/A	N/A	N/A

Insider & Institutional Ownership

20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 86.7% of BOX shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by insiders. Comparatively, 4.0% of BOX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Bitfarms and BOX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	2	0	2.25
BOX	1	4	3	0	2.25

Bitfarms presently has a consensus price target of $3.90, indicating a potential upside of 78.90%. BOX has a consensus price target of $37.80, indicating a potential downside of 11.09%. Given Bitfarms’ higher probable upside, analysts clearly believe Bitfarms is more favorable than BOX.

Valuation and Earnings

This table compares Bitfarms and BOX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$229.28 million	5.73	-$138.65 million	($0.23)	-9.48
BOX	$1.23 billion	4.73	$94.67 million	$0.69	61.61

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

Risk & Volatility

Bitfarms has a beta of 3.77, indicating that its share price is 277% more volatile than the S&P 500. Comparatively, BOX has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Summary

BOX beats Bitfarms on 9 of the 13 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

About BOX

Box, Inc. engages in the provision of an enterprise content platform that enables organizations to securely manage enterprise content while allowing easy, secure access and sharing of this content from anywhere, on any device. Its products include cloud content management, IT and admin controls, Box Governance, Box Zones, Box Relay, Box Shuttle, and Box KeySafe. The company was founded by Aaron Levie, Dylan Smith, Jeff Queisser, and Sam Ghods in March 2005 and is headquartered in Redwood City, CA.