Comparing Strategy (NASDAQ:MSTR) & TeraWulf (NASDAQ:WULF)

Strategy (NASDAQ:MSTR) and TeraWulf (NASDAQ:WULF) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Volatility and Risk

Strategy has a beta of 3.56, indicating that its stock price is 256% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.8, indicating that its stock price is 280% more volatile than the S&P 500.

Valuation & Earnings

This table compares Strategy and TeraWulf”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strategy	$477.23 million	112.57	-$3.85 billion	($97.21)	-1.44
TeraWulf	$168.46 million	35.48	-$661.42 million	($4.37)	-2.74

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

Insider & Institutional Ownership

59.8% of Strategy shares are owned by institutional investors. Comparatively, 62.5% of TeraWulf shares are owned by institutional investors. 5.4% of Strategy shares are owned by company insiders. Comparatively, 15.9% of TeraWulf shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Strategy and TeraWulf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strategy	-6,102.95%	-74.18%	-50.25%
TeraWulf	-1,179.94%	-458.62%	-8.54%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Strategy and TeraWulf, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strategy	1	2	12	2	2.88
TeraWulf	2	2	18	4	2.92

Strategy currently has a consensus price target of $246.13, indicating a potential upside of 76.04%. TeraWulf has a consensus price target of $32.52, indicating a potential upside of 171.48%. Given TeraWulf’s stronger consensus rating and higher possible upside, analysts plainly believe TeraWulf is more favorable than Strategy.

Summary

TeraWulf beats Strategy on 11 of the 15 factors compared between the two stocks.

About Strategy

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions. The company also delivers Strategy Support, helping customers achieve system availability and usage goals through responsive troubleshooting; Strategy Consulting, offering architecture and implementation services; and Strategy Education, which includes free and paid learning options. In addition, the company is actively involved in Bitcoin development. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.