Critical Survey: Tucows (NASDAQ:TCX) vs. BIT Mining (NYSE:BTCM)

BIT Mining (NYSE:BTCM) and Tucows (NASDAQ:TCX) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Profitability

This table compares BIT Mining and Tucows’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BIT Mining	-6.16%	-32.20%	-16.69%
Tucows	-26.01%	-490.14%	-11.58%

Risk & Volatility

BIT Mining has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500. Comparatively, Tucows has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BIT Mining and Tucows, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BIT Mining	0	0	0	0	N/A
Tucows	0	0	0	0	N/A

Earnings & Valuation

This table compares BIT Mining and Tucows”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BIT Mining	$43.10 million	0.59	-$28.71 million	($1.31)	-1.75
Tucows	$350.81 million	0.70	-$96.20 million	($9.51)	-2.35

BIT Mining has higher earnings, but lower revenue than Tucows. Tucows is trading at a lower price-to-earnings ratio than BIT Mining, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

5.3% of BIT Mining shares are held by institutional investors. Comparatively, 73.6% of Tucows shares are held by institutional investors. 19.7% of BIT Mining shares are held by company insiders. Comparatively, 11.6% of Tucows shares are held by company 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.

Summary

BIT Mining beats Tucows on 7 of the 11 factors compared between the two stocks.

About BIT Mining

BIT Mining Limited operates as a cryptocurrency mining company in the Mainland China, the United States, and Hong Kong. The company operates in two segments: Data Center and Cryptocurrency Mining. It operates a cryptocurrency mining data center in Ohio with power capacity of 82.5 megawatts; and purchases and deploys bitcoin mining machines. In addition, it engages in online gaming activities; and provision of technology services. The company was formerly known as 500.com Limited and changed its name to BIT Mining Limited in April 2021. BIT Mining Limited was founded in 2001 and is based in Akron, Ohio.

About Tucows

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.