Analyzing Digihost Technology (NASDAQ:DGHI) & Cipher Mining (NASDAQ:CIFR)

Cipher Mining (NASDAQ:CIFR) and Digihost Technology (NASDAQ:DGHI) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Risk & Volatility

Cipher Mining has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500. Comparatively, Digihost Technology has a beta of 5.25, suggesting that its share price is 425% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Cipher Mining and Digihost Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cipher Mining	0	0	8	2	3.20
Digihost Technology	0	0	1	0	3.00

Cipher Mining currently has a consensus price target of $7.72, suggesting a potential upside of 18.20%. Digihost Technology has a consensus price target of $2.50, suggesting a potential upside of 43.68%. Given Digihost Technology’s higher probable upside, analysts plainly believe Digihost Technology is more favorable than Cipher Mining.

Earnings & Valuation

This table compares Cipher Mining and Digihost Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cipher Mining	$126.84 million	17.91	-$25.78 million	($0.13)	-50.23
Digihost Technology	$26.11 million	2.20	-$21.89 million	($0.54)	-3.22

Digihost Technology has lower revenue, but higher earnings than Cipher Mining. Cipher Mining is trading at a lower price-to-earnings ratio than Digihost Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cipher Mining and Digihost Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cipher Mining	-33.39%	-8.29%	-7.29%
Digihost Technology	-27.10%	-26.99%	-20.02%

Insider and Institutional Ownership

12.3% of Cipher Mining shares are owned by institutional investors. Comparatively, 1.9% of Digihost Technology shares are owned by institutional investors. 2.3% of Cipher Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Cipher Mining beats Digihost Technology on 10 of the 15 factors compared between the two stocks.

About Cipher Mining

Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.

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.