Bitfarms (NASDAQ:BITF) and N-able (NYSE:NABL) Financial Analysis

N-able (NYSE:NABL) and Bitfarms (NASDAQ:BITF) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

96.3% of N-able shares are owned by institutional investors. Comparatively, 20.6% of Bitfarms shares are owned by institutional investors. 2.0% of N-able shares are owned by insiders. Comparatively, 9.5% of Bitfarms shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

N-able has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, indicating that its share price is 277% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for N-able and Bitfarms, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
N-able	2	4	2	0	2.00
Bitfarms	1	1	2	0	2.25

N-able currently has a consensus price target of $5.08, suggesting a potential upside of 0.69%. Bitfarms has a consensus price target of $3.90, suggesting a potential upside of 106.35%. Given Bitfarms’ stronger consensus rating and higher probable upside, analysts clearly believe Bitfarms is more favorable than N-able.

Earnings and Valuation

This table compares N-able and Bitfarms”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
N-able	$511.43 million	1.86	-$18.82 million	($0.02)	-252.25
Bitfarms	$229.28 million	4.97	-$138.65 million	($0.23)	-8.22

N-able has higher revenue and earnings than Bitfarms. N-able is trading at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares N-able and Bitfarms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
N-able	-0.88%	3.55%	2.04%
Bitfarms	-48.26%	-4.48%	-3.71%

Summary

N-able beats Bitfarms on 7 of the 13 factors compared between the two stocks.

About N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.