Head-To-Head Review: Soluna (NASDAQ:SLNH) & Kyndryl (NYSE:KD)

Kyndryl (NYSE:KD) and Soluna (NASDAQ:SLNH) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Kyndryl and Soluna, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	4	2	0	2.00
Soluna	1	0	1	0	2.00

Kyndryl currently has a consensus price target of $29.00, suggesting a potential upside of 131.54%. Soluna has a consensus price target of $5.00, suggesting a potential upside of 455.86%. Given Soluna’s higher probable upside, analysts clearly believe Soluna is more favorable than Kyndryl.

Risk and Volatility

Kyndryl has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Soluna has a beta of 4.56, suggesting that its stock price is 356% more volatile than the S&P 500.

Insider and Institutional Ownership

71.5% of Kyndryl shares are owned by institutional investors. Comparatively, 23.2% of Soluna shares are owned by institutional investors. 1.9% of Kyndryl shares are owned by insiders. Comparatively, 10.1% of Soluna shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Kyndryl and Soluna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyndryl	1.65%	25.91%	3.10%
Soluna	-274.18%	-170.50%	-63.47%

Valuation and Earnings

This table compares Kyndryl and Soluna”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyndryl	$15.06 billion	0.19	$251.00 million	$1.05	11.93
Soluna	$28.78 million	2.14	-$63.33 million	($8.86)	-0.10

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

Summary

Kyndryl beats Soluna on 9 of the 13 factors compared between the two stocks.

About Kyndryl

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.

About Soluna

Soluna Holdings, Inc. together with its subsidiaries, engages in the mining of cryptocurrency through data centers. It operates through two segments, Cryptocurrency Mining and Data Center Hosting. The company also operates in the blockchain business. In addition, the company develops and builds modular data centers that use for cryptocurrency mining. Further, it provides data center hosting services, including electrical power and network connectivity to cryptocurrency mining customers. The company was formerly known as Mechanical Technology Inc and as changed to Soluna Holdings, Inc. Soluna Holdings, Inc. was incorporated in 1961 and is headquartered in Albany, New York.