Head to Head Contrast: Bitfarms (NASDAQ:BITF) vs. Coinbase Global (NASDAQ:COIN)

Bitfarms (NASDAQ:BITF) and Coinbase Global (NASDAQ:COIN) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Risk & Volatility

Bitfarms has a beta of 3.68, meaning that its share price is 268% more volatile than the S&P 500. Comparatively, Coinbase Global has a beta of 3.4, meaning that its share price is 240% more volatile than the S&P 500.

Institutional and Insider Ownership

20.6% of Bitfarms shares are held by institutional investors. Comparatively, 68.8% of Coinbase Global shares are held by institutional investors. 9.5% of Bitfarms shares are held by company insiders. Comparatively, 23.4% of Coinbase Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Bitfarms and Coinbase Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-64.06%	-19.24%	-16.04%
Coinbase Global	33.98%	9.42%	0.30%

Earnings & Valuation

This table compares Bitfarms and Coinbase Global’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$146.37 million	6.85	-$104.04 million	($0.38)	-6.45
Coinbase Global	$3.11 billion	16.96	$94.87 million	$5.01	42.84

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Bitfarms and Coinbase Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	0	1	4	0	2.80
Coinbase Global	2	8	9	0	2.37

Bitfarms currently has a consensus price target of $3.88, suggesting a potential upside of 58.50%. Coinbase Global has a consensus price target of $220.65, suggesting a potential upside of 2.80%. Given Bitfarms’ stronger consensus rating and higher probable upside, research analysts plainly believe Bitfarms is more favorable than Coinbase Global.

Summary

Coinbase Global beats Bitfarms on 11 of the 14 factors compared between the two stocks.

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.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.