Head to Head Review: Bit Digital (NASDAQ:BTBT) vs. Soluna (NASDAQ:SLNH)

Soluna (NASDAQ:SLNH) and Bit Digital (NASDAQ:BTBT) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

23.2% of Soluna shares are held by institutional investors. Comparatively, 47.7% of Bit Digital shares are held by institutional investors. 22.0% of Soluna shares are held by insiders. Comparatively, 41.3% of Bit Digital shares are held by 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 & Volatility

Soluna has a beta of 2.95, suggesting that its share price is 195% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 4.78, suggesting that its share price is 378% more volatile than the S&P 500.

Profitability

This table compares Soluna and Bit Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Soluna	-77.32%	-43.44%	-24.06%
Bit Digital	33.30%	-1.48%	-1.28%

Analyst Ratings

This is a summary of current ratings and recommmendations for Soluna and Bit Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soluna	0	0	0	0	N/A
Bit Digital	0	0	2	0	3.00

Bit Digital has a consensus target price of $6.00, suggesting a potential upside of 142.91%. Given Bit Digital’s higher probable upside, analysts plainly believe Bit Digital is more favorable than Soluna.

Valuation & Earnings

This table compares Soluna and Bit Digital’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Soluna	$38.14 million	0.34	-$29.20 million	($23.20)	-0.14
Bit Digital	$86.85 million	2.35	-$13.89 million	$0.30	8.23

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

Summary

Bit Digital beats Soluna on 13 of the 13 factors compared between the two stocks.

About Soluna

Soluna Holdings, Inc. together with its subsidiaries, engages in the mining of cryptocurrency through data centers. It operates through two segments, Cryptocurrency Mining and Data Center Hosting. The company also operates in the blockchain business. In addition, the company develops and builds modular data centers that use for cryptocurrency mining. Further, it provides data center hosting services, including electrical power and network connectivity to cryptocurrency mining customers. The company was formerly known as Mechanical Technology Inc and as changed to Soluna Holdings, Inc. Soluna Holdings, Inc. was incorporated in 1961 and is headquartered in Albany, New York.

About Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.