Gryphon Digital Mining (NASDAQ:GRYP) vs. Burford Capital (NYSE:BUR) Financial Analysis

Burford Capital (NYSE:BUR) and Gryphon Digital Mining (NASDAQ:GRYP) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Volatility & Risk

Burford Capital has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Gryphon Digital Mining has a beta of 2.45, indicating that its share price is 145% more volatile than the S&P 500.

Insider & Institutional Ownership

10.2% of Gryphon Digital Mining shares are owned by institutional investors. 0.2% of Burford Capital shares are owned by insiders. Comparatively, 11.7% of Gryphon Digital Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Burford Capital and Gryphon Digital Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burford Capital	0	0	3	0	3.00
Gryphon Digital Mining	0	1	0	0	2.00

Burford Capital currently has a consensus price target of $19.50, indicating a potential upside of 42.02%. Given Burford Capital’s stronger consensus rating and higher probable upside, research analysts clearly believe Burford Capital is more favorable than Gryphon Digital Mining.

Profitability

This table compares Burford Capital and Gryphon Digital Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burford Capital	45.81%	12.58%	6.75%
Gryphon Digital Mining	N/A	N/A	-160.27%

Earnings and Valuation

This table compares Burford Capital and Gryphon Digital Mining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burford Capital	$1.09 billion	N/A	$610.52 million	$1.77	7.76
Gryphon Digital Mining	$6.84 million	3.42	-$11.58 million	N/A	N/A

Burford Capital has higher revenue and earnings than Gryphon Digital Mining.

Summary

Burford Capital beats Gryphon Digital Mining on 8 of the 11 factors compared between the two stocks.

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.

About Gryphon Digital Mining

Gryphon Digital Mining, Inc. operates as a bitcoin mining company in the United States. It operates mining computers and ESG-led mining. The company was founded in 2020 and is based in Las Vegas, Nevada.