Head-To-Head Analysis: SHF (NASDAQ:SHFS) & BTCS (NASDAQ:BTCS)

SHF (NASDAQ:SHFS) and BTCS (NASDAQ:BTCS) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Insider and Institutional Ownership

29.2% of SHF shares are held by institutional investors. Comparatively, 3.5% of BTCS shares are held by institutional investors. 60.5% of SHF shares are held by company insiders. Comparatively, 40.2% of BTCS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares SHF and BTCS’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SHF	$17.56 million	2.19	-$17.28 million	($0.28)	-2.48
BTCS	$1.41 million	15.66	$7.82 million	$1.29	1.09

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

Analyst Recommendations

This is a summary of recent ratings for SHF and BTCS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SHF	0	0	0	0	N/A
BTCS	0	0	1	0	3.00

BTCS has a consensus target price of $3.00, suggesting a potential upside of 112.62%. Given BTCS’s higher probable upside, analysts plainly believe BTCS is more favorable than SHF.

Risk and Volatility

SHF has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, BTCS has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Profitability

This table compares SHF and BTCS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SHF	-79.25%	-50.38%	-22.61%
BTCS	1,519.73%	-20.75%	-17.64%

Summary

BTCS beats SHF on 10 of the 13 factors compared between the two stocks.

About SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.

About BTCS

BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.