Bitfarms (NASDAQ:BITF) and LivePerson (NASDAQ:LPSN) Head-To-Head Analysis

Bitfarms (NASDAQ:BITF) and LivePerson (NASDAQ:LPSN) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bitfarms and LivePerson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	2	0	2.25
LivePerson	1	0	0	0	1.00

Bitfarms presently has a consensus target price of $3.90, indicating a potential upside of 79.72%. Given Bitfarms’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Bitfarms is more favorable than LivePerson.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$229.28 million	5.71	-$138.65 million	($0.23)	-9.43
LivePerson	$228.89 million	0.17	-$67.23 million	($13.74)	-0.23

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

Volatility & Risk

Bitfarms has a beta of 3.77, suggesting that its share price is 277% more volatile than the S&P 500. Comparatively, LivePerson has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Insider & Institutional Ownership

20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 79.8% of LivePerson shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by insiders. Comparatively, 2.0% of LivePerson shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Bitfarms and LivePerson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-48.26%	-4.48%	-3.71%
LivePerson	-51.89%	N/A	-8.39%

Summary

Bitfarms beats LivePerson on 10 of the 14 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 LivePerson

LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.