Sphere 3D (NASDAQ:ANY) & Sprott (NYSE:SII) Critical Survey

Sphere 3D (NASDAQ:ANY) and Sprott (NYSE:SII) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

17.3% of Sphere 3D shares are held by institutional investors. Comparatively, 28.3% of Sprott shares are held by institutional investors. 5.6% of Sphere 3D shares are held by company insiders. Comparatively, 18.3% of Sprott shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sphere 3D and Sprott”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sphere 3D	$21.91 million	1.18	-$23.41 million	($0.80)	-1.52
Sprott	$167.12 million	6.78	$41.80 million	$1.82	24.10

Sprott has higher revenue and earnings than Sphere 3D. Sphere 3D is trading at a lower price-to-earnings ratio than Sprott, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sphere 3D and Sprott’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sphere 3D	-50.87%	-49.54%	-34.72%
Sprott	27.38%	15.02%	11.91%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sphere 3D and Sprott, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sphere 3D	0	0	1	0	3.00
Sprott	0	0	0	1	4.00

Sphere 3D currently has a consensus price target of $3.00, suggesting a potential upside of 145.90%. Given Sphere 3D’s higher probable upside, analysts clearly believe Sphere 3D is more favorable than Sprott.

Risk and Volatility

Sphere 3D has a beta of 2.91, suggesting that its share price is 191% more volatile than the S&P 500. Comparatively, Sprott has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Summary

Sprott beats Sphere 3D on 12 of the 15 factors compared between the two stocks.

About Sphere 3D

Sphere 3D Corp. engages in the bitcoin mining business. It is involved with digital asset mining pool operators to provide computing power to the mining pools. The company is based in Stamford, Connecticut.

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.