Reviewing Bitfarms (NASDAQ:BITF) and HIVE Digital Technologies (NASDAQ:HIVE)

HIVE Digital Technologies (NASDAQ:HIVE) and Bitfarms (NASDAQ:BITF) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Profitability

This table compares HIVE Digital Technologies and Bitfarms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HIVE Digital Technologies	-98.49%	-31.98%	-23.71%
Bitfarms	-48.26%	-4.48%	-3.71%

Earnings and Valuation

This table compares HIVE Digital Technologies and Bitfarms”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HIVE Digital Technologies	$297.79 million	2.74	-$148.45 million	($1.29)	-2.30
Bitfarms	$229.28 million	9.52	-$138.65 million	($0.23)	-15.74

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

Analyst Recommendations

This is a summary of current ratings and price targets for HIVE Digital Technologies and Bitfarms, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HIVE Digital Technologies	1	1	6	0	2.62
Bitfarms	1	1	4	0	2.50

HIVE Digital Technologies presently has a consensus price target of $6.95, indicating a potential upside of 134.01%. Bitfarms has a consensus price target of $4.67, indicating a potential upside of 29.14%. Given HIVE Digital Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe HIVE Digital Technologies is more favorable than Bitfarms.

Risk and Volatility

HIVE Digital Technologies has a beta of 3.76, suggesting that its share price is 276% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, suggesting that its share price is 277% more volatile than the S&P 500.

Institutional & Insider Ownership

24.4% of HIVE Digital Technologies shares are held by institutional investors. Comparatively, 20.6% of Bitfarms shares are held by institutional investors. 9.4% of HIVE Digital Technologies shares are held by company insiders. Comparatively, 9.5% of Bitfarms shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Bitfarms beats HIVE Digital Technologies on 8 of the 14 factors compared between the two stocks.

About HIVE Digital Technologies

HIVE Digital Technologies Ltd. operates as a cryptocurrency mining company in Canada, Sweden, and Iceland. The company engages in the mining and sale of digital currencies, including Ethereum Classic, Bitcoin, and other coins. It also operates data centers; and offers infrastructure solutions. The company was formerly known as HIVE Blockchain Technologies Ltd. and changed its name to HIVE Digital Technologies Ltd. in July 2023. HIVE Digital Technologies Ltd. was incorporated in 1987 and is headquartered in Vancouver, Canada.

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.