Contrasting BTC Digital (NASDAQ:BTCT) and Sprott (NYSE:SII)

Sprott (NYSE:SII) and BTC Digital (NASDAQ:BTCT) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Sprott and BTC Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprott	0	0	0	1	4.00
BTC Digital	0	0	0	0	N/A

Institutional and Insider Ownership

28.3% of Sprott shares are held by institutional investors. Comparatively, 7.3% of BTC Digital shares are held by institutional investors. 18.3% of Sprott shares are held by company insiders. Comparatively, 6.8% of BTC Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Sprott and BTC Digital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprott	$157.42 million	7.81	$41.80 million	$1.79	26.56
BTC Digital	$6.77 million	0.52	-$2.82 million	N/A	N/A

Sprott has higher revenue and earnings than BTC Digital.

Volatility and Risk

Sprott has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, BTC Digital has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500.

Profitability

This table compares Sprott and BTC Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprott	26.46%	13.50%	10.67%
BTC Digital	N/A	N/A	N/A

Summary

Sprott beats BTC Digital on 10 of the 10 factors compared between the two stocks.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.

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.