Stronghold Digital Mining (NASDAQ:SDIG) vs. CNFinance (NYSE:CNF) Financial Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CNFinance	9.40%	4.04%	1.09%
Stronghold Digital Mining	3.58%	27.19%	9.94%

Volatility and Risk

CNFinance has a beta of 0.03, indicating that its share price is 97% 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.

Insider & Institutional Ownership

19.3% of Stronghold Digital Mining shares are held by institutional investors. 25.8% of CNFinance shares are held by insiders. Comparatively, 47.6% of Stronghold Digital Mining shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares CNFinance 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
CNFinance	$246.31 million	0.48	$23.26 million	$0.31	5.61
Stronghold Digital Mining	$74.97 million	0.94	-$71.40 million	($4.72)	-0.97

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

Analyst Ratings

This is a summary of current ratings and recommmendations for CNFinance and Stronghold Digital Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNFinance	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 71.03%. Given Stronghold Digital Mining’s higher possible upside, analysts plainly believe Stronghold Digital Mining is more favorable than CNFinance.

Summary

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

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates approximately 87 branches and sub-branches in China. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.

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.