Critical Analysis: Bitfarms (NASDAQ:BITF) and Binah Capital Group (NASDAQ:BCG)

Bitfarms (NASDAQ:BITF) and Binah Capital Group (NASDAQ:BCG) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares Bitfarms and Binah Capital Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$146.37 million	6.62	-$104.04 million	($0.36)	-5.94
Binah Capital Group	$167.96 million	0.31	$570,000.00	N/A	N/A

Binah Capital Group has higher revenue and earnings than Bitfarms.

Institutional and Insider Ownership

20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by insiders. Comparatively, 83.0% of Binah Capital Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Bitfarms and Binah Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-69.08%	-22.17%	-18.93%
Binah Capital Group	-3.06%	-205.99%	-7.62%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bitfarms and Binah Capital Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	0	1	5	0	2.83
Binah Capital Group	0	0	0	0	0.00

Bitfarms presently has a consensus price target of $4.05, indicating a potential upside of 89.25%. Given Bitfarms’ stronger consensus rating and higher possible upside, research analysts clearly believe Bitfarms is more favorable than Binah Capital Group.

Risk & Volatility

Bitfarms has a beta of 3.59, meaning that its stock price is 259% more volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Summary

Bitfarms beats Binah Capital Group on 7 of the 12 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.