Critical Comparison: CleanSpark (NASDAQ:CLSK) versus Mercurity Fintech (NASDAQ:MFH)

Mercurity Fintech (NASDAQ:MFH) and CleanSpark (NASDAQ:CLSK) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Valuation & Earnings

This table compares Mercurity Fintech and CleanSpark”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercurity Fintech	$716,863.00	439.55	-$9.36 million	N/A	N/A
CleanSpark	$467.49 million	5.30	-$145.78 million	$0.11	80.27

Mercurity Fintech has higher earnings, but lower revenue than CleanSpark.

Analyst Recommendations

This is a summary of recent ratings for Mercurity Fintech and CleanSpark, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercurity Fintech	0	0	0	0	0.00
CleanSpark	0	0	8	0	3.00

CleanSpark has a consensus price target of $22.25, indicating a potential upside of 151.98%. Given CleanSpark’s stronger consensus rating and higher possible upside, analysts plainly believe CleanSpark is more favorable than Mercurity Fintech.

Volatility and Risk

Mercurity Fintech has a beta of 3.47, meaning that its stock price is 247% more volatile than the S&P 500. Comparatively, CleanSpark has a beta of 4.2, meaning that its stock price is 320% more volatile than the S&P 500.

Profitability

This table compares Mercurity Fintech and CleanSpark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mercurity Fintech	N/A	N/A	N/A
CleanSpark	16.07%	-2.61%	-2.24%

Institutional & Insider Ownership

30.8% of Mercurity Fintech shares are held by institutional investors. Comparatively, 43.1% of CleanSpark shares are held by institutional investors. 62.8% of Mercurity Fintech shares are held by insiders. Comparatively, 2.7% of CleanSpark shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

CleanSpark beats Mercurity Fintech on 7 of the 12 factors compared between the two stocks.

About Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.

About CleanSpark

CleanSpark, Inc. operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.