Financial Review: BTCS (NASDAQ:BTCS) vs. Argo Blockchain (NASDAQ:ARBK)

Argo Blockchain (NASDAQ:ARBK) and BTCS (NASDAQ:BTCS) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Valuation and Earnings

This table compares Argo Blockchain and BTCS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argo Blockchain	$50.56 million	1.47	-$35.03 million	($0.81)	-1.44
BTCS	$1.65 million	12.48	$7.82 million	$0.93	1.34

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

Insider and Institutional Ownership

2.4% of Argo Blockchain shares are owned by institutional investors. Comparatively, 3.5% of BTCS shares are owned by institutional investors. 44.3% of BTCS shares are owned by 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.

Analyst Ratings

This is a breakdown of current ratings for Argo Blockchain and BTCS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argo Blockchain	0	2	0	0	2.00
BTCS	0	0	1	0	3.00

Argo Blockchain currently has a consensus price target of $1.45, suggesting a potential upside of 24.46%. BTCS has a consensus price target of $3.00, suggesting a potential upside of 140.00%. Given BTCS’s stronger consensus rating and higher possible upside, analysts plainly believe BTCS is more favorable than Argo Blockchain.

Profitability

This table compares Argo Blockchain and BTCS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argo Blockchain	-93.70%	-4,172.69%	-50.32%
BTCS	993.08%	-13.94%	-12.32%

Risk and Volatility

Argo Blockchain has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, BTCS has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Summary

BTCS beats Argo Blockchain on 12 of the 14 factors compared between the two stocks.

About Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.

About BTCS

BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.