Financial Analysis: Bitfarms (BITF) and Its Competitors

Bitfarms (NASDAQ:BITF) is one of 953 public companies in the “Software” industry, but how does it compare to its peers? We will compare Bitfarms to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Volatility & Risk

Bitfarms has a beta of 3.77, indicating that its share price is 277% more volatile than the S&P 500. Comparatively, Bitfarms’ peers have a beta of 1.34, indicating that their average share price is 34% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Bitfarms	$229.28 million	N/A	-8.13
Bitfarms Competitors	$1.86 billion	$387.74 million	108.85

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

Profitability

This table compares Bitfarms and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-48.26%	-4.48%	-3.71%
Bitfarms Competitors	-607.02%	22.93%	-8.85%

Analyst Ratings

This is a summary of current recommendations and price targets for Bitfarms and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	2	0	2.25
Bitfarms Competitors	5748	21526	44879	1497	2.57

Bitfarms currently has a consensus price target of $3.90, indicating a potential upside of 108.56%. As a group, “Software” companies have a potential upside of 29.39%. Given Bitfarms’ higher probable upside, research analysts plainly believe Bitfarms is more favorable than its peers.

Institutional & Insider Ownership

20.6% of Bitfarms shares are held by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are held by institutional investors. 9.5% of Bitfarms shares are held by insiders. Comparatively, 20.0% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Bitfarms peers beat Bitfarms on 8 of the 12 factors compared.

Bitfarms Company Profile

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.