American Express (NYSE:AXP – Get Free Report) and Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
American Express has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 2.99, indicating that its share price is 199% more volatile than the S&P 500.
Earnings & Valuation
This table compares American Express and Stronghold Digital Mining”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
American Express | $65.95 billion | 3.15 | $10.13 billion | $14.01 | 21.12 |
Stronghold Digital Mining | $79.53 million | 0.60 | -$71.40 million | ($3.70) | -0.75 |
Institutional and Insider Ownership
84.3% of American Express shares are owned by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are owned by institutional investors. 0.1% of American Express shares are owned by insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares American Express and Stronghold Digital Mining’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
American Express | 15.36% | 32.65% | 3.56% |
Stronghold Digital Mining | -11.21% | 13.67% | 3.59% |
Analyst Ratings
This is a summary of current ratings for American Express and Stronghold Digital Mining, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
American Express | 3 | 12 | 9 | 0 | 2.25 |
Stronghold Digital Mining | 0 | 1 | 1 | 1 | 3.00 |
American Express currently has a consensus price target of $296.38, indicating a potential upside of 0.18%. Stronghold Digital Mining has a consensus price target of $6.17, indicating a potential upside of 123.43%. Given Stronghold Digital Mining’s stronger consensus rating and higher probable upside, analysts clearly believe Stronghold Digital Mining is more favorable than American Express.
Summary
American Express beats Stronghold Digital Mining on 9 of the 15 factors compared between the two stocks.
About American Express
American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company’s products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.
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.
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