Analyzing Applied Digital (NASDAQ:APLD) & Axe Compute (NASDAQ:AGPU)

Axe Compute (NASDAQ:AGPU – Get Free Report) and Applied Digital (NASDAQ:APLD – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

9.0% of Axe Compute shares are held by institutional investors. Comparatively, 65.7% of Applied Digital shares are held by institutional investors. 1.2% of Axe Compute shares are held by company insiders. Comparatively, 9.5% of Applied Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Axe Compute has a beta of 3.66, meaning that its share price is 266% more volatile than the S&P 500. Comparatively, Applied Digital has a beta of 5.99, meaning that its share price is 499% more volatile than the S&P 500.

Profitability

This table compares Axe Compute and Applied Digital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axe Compute -7,769.61% -1,606.56% -355.39%
Applied Digital -51.28% -27.21% -5.23%

Earnings & Valuation

This table compares Axe Compute and Applied Digital”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axe Compute $120,000.00 735.00 -$233.10 million ($5.75) -1.32
Applied Digital $611.31 million 8.02 -$244.00 million ($1.64) -9.89

Axe Compute has higher earnings, but lower revenue than Applied Digital. Applied Digital is trading at a lower price-to-earnings ratio than Axe Compute, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Axe Compute and Applied Digital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axe Compute 1 0 0 1 2.50
Applied Digital 2 2 12 3 2.84

Applied Digital has a consensus target price of $57.75, indicating a potential upside of 256.04%. Given Applied Digital’s stronger consensus rating and higher probable upside, analysts plainly believe Applied Digital is more favorable than Axe Compute.

Summary

Applied Digital beats Axe Compute on 12 of the 14 factors compared between the two stocks.

About Axe Compute

(Get Free Report)

Predictive Oncology Inc., a knowledge-driven company, focuses on developing personalized cancer therapies using artificial intelligence (AI) primarily in the United States. The company operates in four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment offers clinical testing services comprising tumor drug response testing and genomic profiling tests; and contract research services through patient-centric drug discovery using active learning technology for discovery, clinical and translational research, clinical trials, and diagnostic development and validation. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using High-Throughput Self-Interaction Chromatography, a self-contained, automated system that conducts high-throughput, self-interaction chromatography screens using additives and excipients that are included in protein formulations for soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates staff exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. It also offers research and development services; and media that help cancer cells grow outside the patient’s body and retain their DNA/RNA and proteomic signatures. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is based in Eagan, Minnesota.

About Applied Digital

(Get Free Report)

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.

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