Applied Digital (NASDAQ:APLD – Get Free Report) and Bit Digital (NASDAQ:BTBT – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Applied Digital and Bit Digital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Digital | 2 | 1 | 11 | 3 | 2.88 |
| Bit Digital | 1 | 1 | 3 | 0 | 2.40 |
Applied Digital presently has a consensus price target of $68.15, suggesting a potential upside of 177.26%. Bit Digital has a consensus price target of $4.38, suggesting a potential upside of 187.83%. Given Bit Digital’s higher possible upside, analysts plainly believe Bit Digital is more favorable than Applied Digital.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Digital | $611.31 million | 11.72 | -$244.00 million | ($0.89) | -27.62 |
| Bit Digital | $122.84 million | 4.46 | -$80.32 million | ($1.06) | -1.43 |
Bit Digital has lower revenue, but higher earnings than Applied Digital. Applied Digital is trading at a lower price-to-earnings ratio than Bit Digital, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
65.7% of Applied Digital shares are held by institutional investors. Comparatively, 47.7% of Bit Digital shares are held by institutional investors. 9.5% of Applied Digital shares are held by company insiders. Comparatively, 2.0% of Bit Digital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Applied Digital has a beta of 5.72, meaning that its share price is 472% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 3.97, meaning that its share price is 297% more volatile than the S&P 500.
Profitability
This table compares Applied Digital and Bit Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Digital | -37.78% | -16.42% | -4.00% |
| Bit Digital | -237.19% | -10.66% | -6.81% |
Summary
Applied Digital beats Bit Digital on 11 of the 15 factors compared between the two stocks.
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
About Bit Digital
Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.
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