NU (NYSE:NU – Get Free Report) and Digihost Technology (NASDAQ:DGHI – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares NU and Digihost Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NU | 16.28% | 28.70% | 4.41% |
| Digihost Technology | -41.33% | -36.00% | -25.95% |
Risk & Volatility
NU has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Digihost Technology has a beta of 5.25, indicating that its share price is 425% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NU | $8.03 billion | 7.44 | $1.03 billion | $0.36 | 34.81 |
| Digihost Technology | $26.11 million | 2.68 | -$21.89 million | ($0.54) | -3.93 |
NU has higher revenue and earnings than Digihost Technology. Digihost Technology is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
80.9% of NU shares are owned by institutional investors. Comparatively, 1.9% of Digihost Technology shares are owned by institutional investors. 1.2% of NU shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for NU and Digihost Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NU | 0 | 4 | 5 | 0 | 2.56 |
| Digihost Technology | 0 | 0 | 1 | 0 | 3.00 |
NU presently has a consensus price target of $16.21, indicating a potential upside of 29.39%. Digihost Technology has a consensus price target of $2.50, indicating a potential upside of 17.92%. Given NU’s higher probable upside, equities analysts plainly believe NU is more favorable than Digihost Technology.
Summary
NU beats Digihost Technology on 12 of the 14 factors compared between the two stocks.
About NU
Nu Holdings Ltd. provides digital banking platform and digital financial services in Brazil, Mexico, Colombia, and internationally. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses. In addition, it offers NuCrypto, a solution for buying and selling cryptocurrencies through the Nu app; NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits. The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.
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.
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