Analyzing Iris Energy (NASDAQ:IREN) and BitFuFu (NASDAQ:FUFU)

BitFuFu (NASDAQ:FUFU) and Iris Energy (NASDAQ:IREN) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Risk & Volatility

BitFuFu has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Iris Energy has a beta of 3.41, suggesting that its stock price is 241% more volatile than the S&P 500.

Institutional & Insider Ownership

37.3% of BitFuFu shares are owned by institutional investors. Comparatively, 41.1% of Iris Energy shares are owned by institutional investors. 35.0% of BitFuFu shares are owned by insiders. Comparatively, 21.5% of Iris Energy shares are owned 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.

Valuation & Earnings

This table compares BitFuFu and Iris Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BitFuFu	$423.70 million	1.59	$10.49 million	N/A	N/A
Iris Energy	$188.76 million	6.05	-$28.95 million	N/A	N/A

BitFuFu has higher revenue and earnings than Iris Energy.

Analyst Ratings

This is a summary of current ratings for BitFuFu and Iris Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BitFuFu	0	0	0	0	N/A
Iris Energy	0	1	8	0	2.89

Iris Energy has a consensus price target of $15.63, indicating a potential upside of 100.58%. Given Iris Energy’s higher probable upside, analysts plainly believe Iris Energy is more favorable than BitFuFu.

Profitability

This table compares BitFuFu and Iris Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BitFuFu	N/A	N/A	N/A
Iris Energy	N/A	N/A	N/A

Summary

Iris Energy beats BitFuFu on 5 of the 8 factors compared between the two stocks.

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.

About Iris Energy

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