Financial Review: Bitfarms (BITF) and Its Rivals

Bitfarms (NASDAQ:BITF) is one of 954 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Bitfarms to related businesses based on the strength of its institutional ownership, risk, valuation, earnings, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

20.6% of Bitfarms shares are held by institutional investors. Comparatively, 41.7% of shares of all “Software” companies are held by institutional investors. 9.5% of Bitfarms shares are held by insiders. Comparatively, 20.0% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Bitfarms has a beta of 3.77, suggesting that its share price is 277% more volatile than the S&P 500. Comparatively, Bitfarms’ competitors have a beta of 1.34, suggesting that their average share price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Bitfarms and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	2	0	2.25
Bitfarms Competitors	5781	21584	44978	1499	2.57

Bitfarms currently has a consensus price target of $3.90, suggesting a potential upside of 104.19%. As a group, “Software” companies have a potential upside of 27.95%. Given Bitfarms’ higher probable upside, research analysts clearly believe Bitfarms is more favorable than its competitors.

Profitability

This table compares Bitfarms and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-48.26%	-4.48%	-3.71%
Bitfarms Competitors	-603.24%	26.43%	-8.84%

Earnings and Valuation

This table compares Bitfarms and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bitfarms	$229.28 million	N/A	-8.30
Bitfarms Competitors	$1.86 billion	$386.16 million	113.33

Bitfarms’ competitors have higher revenue and earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Bitfarms competitors beat Bitfarms on 8 of the 12 factors compared.

About Bitfarms

Bitfarms Ltd. is a digital asset infrastructure company focused primarily on Bitcoin mining. Founded in 2017, the company develops and operates data centers equipped with specialized computers that process transactions on the Bitcoin network and earn Bitcoin through mining. Bitfarms has operated facilities in Canada, the United States, Paraguay and Argentina. Its activities include managing data-center infrastructure and securing energy capacity to support its mining operations. The company has also explored using its infrastructure and energy resources for other computing applications, including high-performance computing and artificial intelligence.