Comparing Hut 8 (NASDAQ:HUT) & X Financial (NYSE:XYF)

Hut 8 (NASDAQ:HUT) and X Financial (NYSE:XYF) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

31.8% of Hut 8 shares are owned by institutional investors. Comparatively, 1.1% of X Financial shares are owned by institutional investors. 12.0% of Hut 8 shares are owned by insiders. Comparatively, 31.6% of X Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hut 8 and X Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$73.90 million	19.16	-$186.77 million	N/A	N/A
X Financial	$2.23 billion	0.15	$167.16 million	$3.54	1.91

X Financial has higher revenue and earnings than Hut 8.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Hut 8 and X Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	0	0	6	0	3.00
X Financial	0	0	0	0	N/A

Hut 8 currently has a consensus price target of $16.50, suggesting a potential upside of 5.36%. Given Hut 8’s higher probable upside, equities research analysts clearly believe Hut 8 is more favorable than X Financial.

Profitability

This table compares Hut 8 and X Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hut 8	N/A	N/A	N/A
X Financial	25.38%	20.63%	10.74%

Risk & Volatility

Hut 8 has a beta of 4.05, indicating that its share price is 305% more volatile than the S&P 500. Comparatively, X Financial has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Summary

X Financial beats Hut 8 on 6 of the 11 factors compared between the two stocks.

About Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.

About X Financial

X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.