Critical Review: StoneX Group (NASDAQ:SNEX) & Core Scientific (NASDAQ:CORZ)

StoneX Group (NASDAQ:SNEX) and Core Scientific (NASDAQ:CORZ) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation & Earnings

This table compares StoneX Group and Core Scientific”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneX Group	$132.38 billion	0.06	$305.90 million	$4.47	23.80
Core Scientific	$319.02 million	24.37	-$288.62 million	$1.17	21.05

StoneX Group has higher revenue and earnings than Core Scientific. Core Scientific is trading at a lower price-to-earnings ratio than StoneX Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares StoneX Group and Core Scientific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StoneX Group	0.25%	16.43%	0.91%
Core Scientific	-89.90%	N/A	-53.74%

Insider & Institutional Ownership

75.9% of StoneX Group shares are owned by institutional investors. 11.8% of StoneX Group shares are owned by company insiders. Comparatively, 1.7% of Core Scientific shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

StoneX Group has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Core Scientific has a beta of 5.45, suggesting that its stock price is 445% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for StoneX Group and Core Scientific, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneX Group	0	1	3	0	2.75
Core Scientific	2	3	15	1	2.71

StoneX Group currently has a consensus target price of $122.00, suggesting a potential upside of 14.67%. Core Scientific has a consensus target price of $25.07, suggesting a potential upside of 1.80%. Given StoneX Group’s stronger consensus rating and higher probable upside, analysts clearly believe StoneX Group is more favorable than Core Scientific.

Summary

StoneX Group beats Core Scientific on 11 of the 15 factors compared between the two stocks.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.

About Core Scientific

Core Scientific, Inc. provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment. In addition, the company provides electrical power, repair, and other infrastructure services to operate, maintain, and earn digital assets; and sells mining equipment to customers. Core Scientific, Inc. was founded in 2017 and is headquartered in Dover, Delaware.