Reviewing Jiayin Group (NASDAQ:JFIN) and Cipher Mining (NASDAQ:CIFR)

Cipher Mining (NASDAQ:CIFR) and Jiayin Group (NASDAQ:JFIN) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cipher Mining and Jiayin Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cipher Mining	0	1	7	2	3.10
Jiayin Group	0	0	0	0	N/A

Cipher Mining presently has a consensus price target of $7.21, suggesting a potential upside of 75.96%. Given Cipher Mining’s higher probable upside, analysts plainly believe Cipher Mining is more favorable than Jiayin Group.

Institutional & Insider Ownership

12.3% of Cipher Mining shares are owned by institutional investors. Comparatively, 44.1% of Jiayin Group shares are owned by institutional investors. 2.3% of Cipher Mining shares are owned by insiders. Comparatively, 51.2% of Jiayin Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cipher Mining and Jiayin Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cipher Mining	11.43%	3.41%	2.98%
Jiayin Group	20.00%	49.78%	22.46%

Earnings and Valuation

This table compares Cipher Mining and Jiayin Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cipher Mining	$158.67 million	8.01	-$25.78 million	$0.06	68.33
Jiayin Group	$6.02 billion	0.07	$182.75 million	$3.35	2.27

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

Risk and Volatility

Cipher Mining has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500. Comparatively, Jiayin Group has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Summary

Jiayin Group beats Cipher Mining on 8 of the 14 factors compared between the two stocks.

About Cipher Mining

Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.