Financial Analysis: Defi Technologies (NASDAQ:DEFT) & Digihost Technology (NASDAQ:DGXX)

Defi Technologies (NASDAQ:DEFT) and Digihost Technology (NASDAQ:DGXX) are both small-cap financial services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Defi Technologies and Digihost Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Defi Technologies	0	0	2	0	3.00
Digihost Technology	0	0	1	0	3.00

Defi Technologies currently has a consensus target price of $6.25, suggesting a potential upside of 86.57%. Digihost Technology has a consensus target price of $2.50, suggesting a potential upside of 65.56%. Given Defi Technologies’ higher possible upside, research analysts plainly believe Defi Technologies is more favorable than Digihost Technology.

Valuation and Earnings

This table compares Defi Technologies and Digihost Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Defi Technologies	$153.58 million	7.26	$96.54 million	$0.29	11.55
Digihost Technology	$33.32 million	1.65	-$18.91 million	($0.52)	-2.90

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

Insider and Institutional Ownership

1.9% of Digihost Technology shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Defi Technologies and Digihost Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Defi Technologies	N/A	N/A	N/A
Digihost Technology	N/A	N/A	N/A

Volatility and Risk

Defi Technologies has a beta of 5.25, meaning that its share price is 425% more volatile than the S&P 500. Comparatively, Digihost Technology has a beta of 5.33, meaning that its share price is 433% more volatile than the S&P 500.

Summary

Defi Technologies beats Digihost Technology on 7 of the 9 factors compared between the two stocks.

About Defi Technologies

DeFi Technologies, Inc. engages in the provision of investment services. It plans to acquire equity, debt, or other securities of publicly traded or private companies or other entities. The firm offers DeFi ETNs, DeFi Governance, DeFi Venture and DeFi Treasury. The company was founded by Olivier Francois Roussy Newton and Wouter Witvoet on April 14, 1986 and is headquartered in Toronto, Canada.

About Digihost Technology

Digihost Technology Inc. operates as a blockchain technology company that focuses on digital currency mining in the United States. It mines for cryptocurrency. The company was incorporated in 2017 and is headquartered in Toronto, Canada.