Digihost Technology (NASDAQ:DGHI – Get Free Report) and SHF (NASDAQ:SHFS – Get Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Volatility and Risk
Digihost Technology has a beta of 5.25, meaning that its share price is 425% more volatile than the S&P 500. Comparatively, SHF has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.
Profitability
This table compares Digihost Technology and SHF’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digihost Technology | -41.33% | -36.00% | -25.95% |
| SHF | 36.34% | 10.24% | 5.66% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digihost Technology | 0 | 0 | 1 | 0 | 3.00 |
| SHF | 0 | 0 | 0 | 0 | 0.00 |
Digihost Technology presently has a consensus target price of $2.50, suggesting a potential upside of 44.51%. Given Digihost Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Digihost Technology is more favorable than SHF.
Earnings and Valuation
This table compares Digihost Technology and SHF”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digihost Technology | $42.15 million | 1.36 | -$21.89 million | ($0.54) | -3.20 |
| SHF | $22.21 million | 0.85 | -$17.28 million | $0.17 | 2.00 |
SHF has lower revenue, but higher earnings than Digihost Technology. Digihost Technology is trading at a lower price-to-earnings ratio than SHF, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
1.9% of Digihost Technology shares are owned by institutional investors. Comparatively, 29.2% of SHF shares are owned by institutional investors. 60.5% of SHF shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
SHF beats Digihost Technology on 8 of the 14 factors compared between the two stocks.
About Digihost Technology
Digihost Technology Inc. operates as a blockchain technology company in the United States and Canada. The company operates through Cryptocurrency Mining, Sales of Energy, and Colocation Services segments. It also mines for cryptocurrency; and supplies energy from power plants. Digihost Technology Inc. was incorporated in 2017 and is headquartered in Houston, Texas.
About SHF
SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.
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