CleanSpark (NASDAQ:CLSK – Get Free Report) and Burford Capital (NYSE:BUR – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Institutional and Insider Ownership
43.1% of CleanSpark shares are owned by institutional investors. 2.7% of CleanSpark shares are owned by company insiders. Comparatively, 0.2% of Burford Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for CleanSpark and Burford Capital, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CleanSpark | 0 | 0 | 7 | 0 | 3.00 |
Burford Capital | 0 | 0 | 3 | 0 | 3.00 |
Profitability
This table compares CleanSpark and Burford Capital’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CleanSpark | 16.07% | -2.61% | -2.24% |
Burford Capital | 34.81% | 8.07% | 4.28% |
Valuation and Earnings
This table compares CleanSpark and Burford Capital”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CleanSpark | $467.49 million | 5.24 | -$145.78 million | $0.11 | 79.36 |
Burford Capital | $341.23 million | 9.02 | $610.52 million | $0.65 | 21.58 |
Burford Capital has lower revenue, but higher earnings than CleanSpark. Burford Capital is trading at a lower price-to-earnings ratio than CleanSpark, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
CleanSpark has a beta of 4.2, meaning that its share price is 320% more volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
Summary
CleanSpark beats Burford Capital on 7 of the 13 factors compared between the two stocks.
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.
About Burford Capital
Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.
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