Bit Digital (NASDAQ:BTBT) vs. Coinbase Global (NASDAQ:COIN) Financial Contrast

Coinbase Global (NASDAQ:COIN) and Bit Digital (NASDAQ:BTBT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Coinbase Global and Bit Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coinbase Global	2	9	9	0	2.35
Bit Digital	0	0	2	0	3.00

Coinbase Global currently has a consensus price target of $215.50, indicating a potential downside of 4.59%. Bit Digital has a consensus price target of $5.50, indicating a potential upside of 108.33%. Given Bit Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Bit Digital is more favorable than Coinbase Global.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coinbase Global	33.98%	9.42%	0.30%
Bit Digital	57.44%	0.30%	0.25%

Institutional and Insider Ownership

68.8% of Coinbase Global shares are owned by institutional investors. Comparatively, 47.7% of Bit Digital shares are owned by institutional investors. 23.4% of Coinbase Global shares are owned by company insiders. Comparatively, 41.3% of Bit Digital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Coinbase Global and Bit Digital’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$3.11 billion	17.84	$94.87 million	$5.01	45.08
Bit Digital	$44.92 million	4.85	-$13.89 million	$0.30	8.80

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

Volatility and Risk

Coinbase Global has a beta of 3.44, meaning that its share price is 244% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 4.75, meaning that its share price is 375% more volatile than the S&P 500.

Summary

Coinbase Global beats Bit Digital on 9 of the 14 factors compared between the two stocks.

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.

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.