Financial Analysis: IREN (IREN) vs. Its Peers

IREN (NASDAQ:IREN) is one of 959 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare IREN to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Earnings and Valuation

This table compares IREN and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
IREN	$707.01 million	-$702.62 million	-4.77
IREN Competitors	$1.79 billion	$383.46 million	112.21

IREN’s competitors have higher revenue and earnings than IREN. IREN is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for IREN and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IREN	1	5	15	1	2.73
IREN Competitors	5835	21614	45009	1500	2.57

IREN presently has a consensus price target of $64.57, suggesting a potential upside of 231.48%. As a group, “Software” companies have a potential upside of 27.82%. Given IREN’s stronger consensus rating and higher probable upside, research analysts plainly believe IREN is more favorable than its competitors.

Risk & Volatility

IREN has a beta of 4.33, suggesting that its stock price is 333% more volatile than the S&P 500. Comparatively, IREN’s competitors have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

41.1% of IREN shares are owned by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are owned by institutional investors. 6.8% of IREN shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares IREN and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IREN	-194.36%	-16.36%	-4.67%
IREN Competitors	-599.60%	26.31%	-8.93%

Summary

IREN beats its competitors on 7 of the 13 factors compared.

IREN Company Profile

IREN Limited, formerly known as Iris Energy, develops and operates data centers for bitcoin mining and artificial intelligence cloud services. Its AI business provides access to high-performance computing infrastructure, including GPU-based services, for customers with demanding computing needs. Founded in Australia in 2018 by brothers Daniel and Will Roberts, the company has expanded its data-center operations into North America, including locations in British Columbia, Canada, and Texas. IREN has emphasized developing facilities with access to renewable energy.