Contrasting Stronghold Digital Mining (NASDAQ:SDIG) and SHF (NASDAQ:SHFS)

SHF (NASDAQ:SHFS) and Stronghold Digital Mining (NASDAQ:SDIG) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Volatility and Risk

SHF has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500.

Earnings & Valuation

This table compares SHF and Stronghold Digital Mining’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SHF	$20.72 million	1.41	-$17.28 million	($0.28)	-1.88
Stronghold Digital Mining	$85.22 million	0.68	-$71.40 million	($4.72)	-0.80

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

Analyst Recommendations

This is a summary of recent ratings and price targets for SHF and Stronghold Digital Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SHF	0	0	0	0	N/A
Stronghold Digital Mining	0	0	2	0	3.00

Stronghold Digital Mining has a consensus price target of $7.83, indicating a potential upside of 106.68%. Given Stronghold Digital Mining’s higher possible upside, analysts plainly believe Stronghold Digital Mining is more favorable than SHF.

Institutional and Insider Ownership

29.2% of SHF shares are held by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are held by institutional investors. 60.5% of SHF shares are held by insiders. Comparatively, 47.5% of Stronghold Digital Mining shares are held 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.

Profitability

This table compares SHF and Stronghold Digital Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SHF	-79.25%	-50.38%	-22.61%
Stronghold Digital Mining	3.58%	27.19%	9.94%

Summary

Stronghold Digital Mining beats SHF on 8 of the 13 factors compared between the two stocks.

About SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.

About Stronghold Digital Mining

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.