Critical Review: Cleanspark (NASDAQ:CLSK) vs. Greenlane (NASDAQ:GNLN)

Cleanspark (NASDAQ:CLSK) and Greenlane (NASDAQ:GNLN) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Cleanspark and Greenlane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cleanspark	-146.90%	-18.63%	-8.15%
Greenlane	-4,630.56%	-282.11%	-240.74%

Earnings and Valuation

This table compares Cleanspark and Greenlane”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cleanspark	$766.31 million	4.68	$364.46 million	($3.77)	-3.70
Greenlane	$4.36 million	0.49	-$85.58 million	($58.92)	-0.05

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

Insider & Institutional Ownership

43.1% of Cleanspark shares are held by institutional investors. Comparatively, 14.0% of Greenlane shares are held by institutional investors. 2.1% of Cleanspark shares are held by company insiders. Comparatively, 13.0% of Greenlane shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cleanspark and Greenlane, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cleanspark	1	1	13	1	2.88
Greenlane	1	0	0	0	1.00

Cleanspark currently has a consensus target price of $23.88, indicating a potential upside of 71.22%. Given Cleanspark’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Cleanspark is more favorable than Greenlane.

Volatility and Risk

Cleanspark has a beta of 3.84, indicating that its stock price is 284% more volatile than the S&P 500. Comparatively, Greenlane has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.

Summary

Cleanspark beats Greenlane on 13 of the 15 factors compared between the two stocks.

About Cleanspark

CleanSpark, Inc. operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.

About Greenlane

Greenlane Holdings, Inc. develops and distributes cannabis accessories, vape solutions, and lifestyle products in the United States, Canada, and Europe. It operates in two segments, Consumer Goods and Industrial Goods. The company provides consumption accessories, vaporizers, pipes, rolling papers, grinders, and apparel lines, as well as bubblers, rigs, other smoking and vaporization related accessories, and merchandise. It offers its products under the Groove, Eyce, DaVinci, Higher Standards, Pollen Gear, Marley Natural, and Keith Haring brands. The company also operates e-commerce websites, such as Vapor.com, Vaposhop.com, DaVinciVaporizer.com, PuffItUp.com, HigherStandards.com, EyceMolds.com, and MarleyNaturalShop.com. It serves customers through smoke shops, cannabis dispensaries, and specialty retailers. The company was founded in 2005 and is headquartered in Boca Raton, Florida.