Critical Contrast: BTC Digital (NASDAQ:BTCT) and CleanSpark (NASDAQ:CLSK)

BTC Digital (NASDAQ:BTCT) and CleanSpark (NASDAQ:CLSK) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Institutional & Insider Ownership

7.3% of BTC Digital shares are owned by institutional investors. Comparatively, 43.1% of CleanSpark shares are owned by institutional investors. 6.8% of BTC Digital shares are owned by company insiders. Comparatively, 3.5% of CleanSpark shares are owned by company 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 BTC Digital and CleanSpark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BTC Digital	N/A	N/A	N/A
CleanSpark	-46.31%	-3.64%	-3.39%

Valuation & Earnings

This table compares BTC Digital and CleanSpark”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BTC Digital	$6.77 million	0.43	-$2.82 million	N/A	N/A
CleanSpark	$342.81 million	6.00	-$136.59 million	N/A	N/A

BTC Digital has higher earnings, but lower revenue than CleanSpark.

Risk and Volatility

BTC Digital has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, CleanSpark has a beta of 4.18, indicating that its share price is 318% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for BTC Digital and CleanSpark, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BTC Digital	0	0	0	0	N/A
CleanSpark	0	1	5	0	2.83

CleanSpark has a consensus price target of $18.97, suggesting a potential upside of 110.04%. Given CleanSpark’s higher probable upside, analysts plainly believe CleanSpark is more favorable than BTC Digital.

Summary

CleanSpark beats BTC Digital on 6 of the 11 factors compared between the two stocks.

About BTC Digital

BTC Digital Ltd. a crypto asset technology company engages in bitcoin mining business. It is also involved in mining machines resale and rental business. The company was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023. The company was founded in 2006 and is headquartered in Shenzhen, China.

About CleanSpark

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.