Coinbase Global (NASDAQ:COIN) vs. Bitcoin Depot (NASDAQ:BTM) Critical Review

Coinbase Global (NASDAQ:COIN) and Bitcoin Depot (NASDAQ:BTM) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Coinbase Global and Bitcoin Depot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coinbase Global	29.76%	14.81%	0.41%
Bitcoin Depot	-2.28%	-488.33%	-15.15%

Institutional and Insider Ownership

68.8% of Coinbase Global shares are held by institutional investors. Comparatively, 9.2% of Bitcoin Depot shares are held by institutional investors. 23.4% of Coinbase Global shares are held by company insiders. Comparatively, 70.2% of Bitcoin Depot shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Coinbase Global has a beta of 3.34, suggesting that its share price is 234% more volatile than the S&P 500. Comparatively, Bitcoin Depot has a beta of -0.33, suggesting that its share price is 133% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Coinbase Global and Bitcoin Depot, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coinbase Global	1	9	10	0	2.45
Bitcoin Depot	0	1	2	1	3.00

Coinbase Global presently has a consensus target price of $255.22, suggesting a potential downside of 13.83%. Bitcoin Depot has a consensus target price of $3.67, suggesting a potential upside of 84.25%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than Coinbase Global.

Earnings and Valuation

This table compares Coinbase Global and Bitcoin Depot”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$3.11 billion	23.86	$94.87 million	$5.86	50.55
Bitcoin Depot	$585.28 million	0.21	-$26.10 million	($0.93)	-2.14

Coinbase Global has higher revenue and earnings than Bitcoin Depot. Bitcoin Depot is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.

Summary

Coinbase Global beats Bitcoin Depot on 11 of the 15 factors compared between the two stocks.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.

About Bitcoin Depot

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.