Critical Comparison: IREN (IREN) vs. Its Competitors

IREN (NASDAQ:IREN) is one of 959 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare IREN to related companies based on the strength of its risk, valuation, dividends, earnings, profitability, analyst recommendations and institutional ownership.

Volatility and Risk

IREN has a beta of 4.28, meaning that its stock price is 328% more volatile than the S&P 500. Comparatively, IREN’s peers have a beta of 1.19, meaning that their average stock price is 19% more volatile than the S&P 500.

Earnings & Valuation

This table compares IREN and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
IREN	$707.01 million	-$702.62 million	-19.39
IREN Competitors	$1.80 billion	$386.73 million	102.32

IREN’s peers have higher revenue and earnings than IREN. IREN is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

41.1% of IREN shares are owned by institutional investors. Comparatively, 42.2% of shares of all “Software” companies are owned by institutional investors. 5.0% of IREN shares are owned by insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for IREN and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IREN	2	3	15	1	2.71
IREN Competitors	5487	21131	44113	1450	2.58

IREN presently has a consensus target price of $81.57, indicating a potential upside of 79.79%. As a group, “Software” companies have a potential upside of 290.34%. Given IREN’s peers higher probable upside, analysts clearly believe IREN has less favorable growth aspects than its peers.

Profitability

This table compares IREN and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IREN	-99.38%	-15.46%	-5.51%
IREN Competitors	-629.74%	30.33%	-8.95%

Summary

IREN peers beat IREN on 7 of the 13 factors compared.

About IREN

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.