Contrasting BitFuFu (NASDAQ:FUFU) & Iris Energy (NASDAQ:IREN)

BitFuFu (NASDAQ:FUFU) and Iris Energy (NASDAQ:IREN) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for BitFuFu and Iris Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BitFuFu	0	0	0	0	N/A
Iris Energy	0	1	8	0	2.89

Iris Energy has a consensus price target of $15.63, indicating a potential upside of 94.58%. Given Iris Energy’s higher probable upside, analysts clearly believe Iris Energy is more favorable than BitFuFu.

Volatility and Risk

BitFuFu has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Iris Energy has a beta of 3.41, suggesting that its share price is 241% more volatile than the S&P 500.

Institutional and Insider Ownership

37.3% of BitFuFu shares are held by institutional investors. Comparatively, 41.1% of Iris Energy shares are held by institutional investors. 35.0% of BitFuFu shares are held by insiders. Comparatively, 21.5% of Iris Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares BitFuFu and Iris Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BitFuFu	N/A	N/A	N/A
Iris Energy	N/A	N/A	N/A

Valuation & Earnings

This table compares BitFuFu and Iris Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BitFuFu	$423.70 million	1.88	$10.49 million	N/A	N/A
Iris Energy	$188.76 million	6.24	-$28.95 million	N/A	N/A

BitFuFu has higher revenue and earnings than Iris Energy.

Summary

Iris Energy beats BitFuFu on 5 of the 8 factors compared between the two stocks.

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.

About Iris Energy

Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.