TeraWulf (NASDAQ:WULF) and MGT Capital Investments (OTCMKTS:MGTI) Critical Contrast

MGT Capital Investments (OTCMKTS:MGTI) and TeraWulf (NASDAQ:WULF) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Volatility & Risk

MGT Capital Investments has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.7, suggesting that its share price is 170% more volatile than the S&P 500.

Earnings & Valuation

This table compares MGT Capital Investments and TeraWulf”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGT Capital Investments	$400,000.00	3.14	-$6.13 million	N/A	N/A
TeraWulf	$140.05 million	7.88	-$73.42 million	($0.20)	-14.40

MGT Capital Investments has higher earnings, but lower revenue than TeraWulf.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MGT Capital Investments and TeraWulf, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGT Capital Investments	0	0	0	0	0.00
TeraWulf	0	1	7	2	3.10

TeraWulf has a consensus price target of $8.71, suggesting a potential upside of 202.58%. Given TeraWulf’s stronger consensus rating and higher probable upside, analysts clearly believe TeraWulf is more favorable than MGT Capital Investments.

Profitability

This table compares MGT Capital Investments and TeraWulf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGT Capital Investments	N/A	N/A	N/A
TeraWulf	-41.88%	-15.91%	-11.67%

Insider and Institutional Ownership

62.5% of TeraWulf shares are held by institutional investors. 3.8% of MGT Capital Investments shares are held by insiders. Comparatively, 24.9% of TeraWulf shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

TeraWulf beats MGT Capital Investments on 9 of the 13 factors compared between the two stocks.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.