Financial Analysis: DeFi Technologies (DEFT) & Its Rivals

DeFi Technologies (NASDAQ:DEFT) is one of 260 public companies in the “Technology Services” industry, but how does it weigh in compared to its peers? We will compare DeFi Technologies to related companies based on the strength of its institutional ownership, analyst recommendations, valuation, risk, earnings, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DeFi Technologies	62.45%	171.79%	18.71%
DeFi Technologies Competitors	-270.79%	-106.28%	-20.29%

Insider and Institutional Ownership

37.3% of shares of all “Technology Services” companies are held by institutional investors. 21.1% of shares of all “Technology Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for DeFi Technologies and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeFi Technologies	0	0	2	0	3.00
DeFi Technologies Competitors	446	2063	4555	221	2.62

DeFi Technologies currently has a consensus target price of $6.25, indicating a potential upside of 99.04%. As a group, “Technology Services” companies have a potential upside of 18.77%. Given DeFi Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe DeFi Technologies is more favorable than its peers.

Volatility and Risk

DeFi Technologies has a beta of 4.02, meaning that its stock price is 302% more volatile than the S&P 500. Comparatively, DeFi Technologies’ peers have a beta of -13.69, meaning that their average stock price is 1,469% less volatile than the S&P 500.

Earnings and Valuation

This table compares DeFi Technologies and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DeFi Technologies	$40.30 million	-$28.50 million	10.83
DeFi Technologies Competitors	$1.20 billion	$32.10 million	-15.48

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

Summary

DeFi Technologies beats its peers on 8 of the 13 factors compared.

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.