Critical Contrast: Cricut (NASDAQ:CRCT) and Bit Digital (NASDAQ:BTBT)

Cricut (NASDAQ:CRCT) and Bit Digital (NASDAQ:BTBT) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Cricut and Bit Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cricut	3	1	0	0	1.25
Bit Digital	0	1	2	0	2.67

Cricut currently has a consensus target price of $4.18, suggesting a potential downside of 17.81%. Bit Digital has a consensus target price of $6.00, suggesting a potential upside of 169.06%. Given Bit Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Bit Digital is more favorable than Cricut.

Profitability

This table compares Cricut and Bit Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cricut	11.31%	19.91%	12.15%
Bit Digital	127.61%	-7.11%	-6.23%

Insider and Institutional Ownership

19.6% of Cricut shares are held by institutional investors. Comparatively, 47.7% of Bit Digital shares are held by institutional investors. 18.6% of Cricut shares are held by company insiders. Comparatively, 1.8% of Bit Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Cricut and Bit Digital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cricut	$712.54 million	1.51	$62.83 million	$0.38	13.39
Bit Digital	$108.05 million	6.68	$28.31 million	$0.42	5.31

Cricut has higher revenue and earnings than Bit Digital. Bit Digital is trading at a lower price-to-earnings ratio than Cricut, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cricut has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Bit Digital has a beta of 4.29, meaning that its stock price is 329% more volatile than the S&P 500.

Summary

Bit Digital beats Cricut on 8 of the 14 factors compared between the two stocks.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

About Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.