Reviewing Bitfarms (NASDAQ:BITF) and Trend Micro (OTCMKTS:TMICY)

Trend Micro (OTCMKTS:TMICY) and Bitfarms (NASDAQ:BITF) are both mid-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Trend Micro and Bitfarms, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trend Micro	0	1	0	1	3.00
Bitfarms	1	1	5	0	2.57

Bitfarms has a consensus price target of $4.67, suggesting a potential upside of 34.73%. Given Bitfarms’ higher possible upside, analysts clearly believe Bitfarms is more favorable than Trend Micro.

Institutional and Insider Ownership

0.1% of Trend Micro shares are held by institutional investors. Comparatively, 20.6% of Bitfarms shares are held by institutional investors. 9.5% of Bitfarms shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Trend Micro and Bitfarms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trend Micro	12.30%	27.93%	8.63%
Bitfarms	-48.26%	-4.48%	-3.71%

Volatility & Risk

Trend Micro has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, suggesting that its stock price is 277% more volatile than the S&P 500.

Valuation & Earnings

This table compares Trend Micro and Bitfarms”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trend Micro	$1.85 billion	2.74	$231.30 million	$1.76	22.03
Bitfarms	$229.28 million	9.12	-$138.65 million	($0.23)	-15.09

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

Summary

Trend Micro beats Bitfarms on 9 of the 15 factors compared between the two stocks.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.

About Bitfarms

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.