Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) and Burford Capital (NYSE:BUR – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Insider & Institutional Ownership
19.3% of Stronghold Digital Mining shares are held by institutional investors. 21.1% of Stronghold Digital Mining shares are held by insiders. Comparatively, 0.2% of Burford Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Stronghold Digital Mining and Burford Capital”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stronghold Digital Mining | $86.09 million | 0.91 | -$71.40 million | ($4.62) | -1.00 |
| Burford Capital | $563.24 million | 5.25 | $610.52 million | $1.77 | 7.63 |
Analyst Recommendations
This is a breakdown of current ratings for Stronghold Digital Mining and Burford Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stronghold Digital Mining | 0 | 2 | 1 | 0 | 2.33 |
| Burford Capital | 0 | 0 | 3 | 0 | 3.00 |
Stronghold Digital Mining presently has a consensus target price of $6.17, indicating a potential upside of 33.48%. Burford Capital has a consensus target price of $19.50, indicating a potential upside of 44.34%. Given Burford Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Burford Capital is more favorable than Stronghold Digital Mining.
Profitability
This table compares Stronghold Digital Mining and Burford Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stronghold Digital Mining | -7.61% | 40.15% | 12.99% |
| Burford Capital | 45.81% | 12.58% | 6.75% |
Risk and Volatility
Stronghold Digital Mining has a beta of 2.9, meaning that its share price is 190% more volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Summary
Burford Capital beats Stronghold Digital Mining on 9 of the 14 factors compared between the two stocks.
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.
About Burford Capital
Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.
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