Critical Contrast: Coinbase Global (NASDAQ:COIN) versus Blackstone (NYSE:BX)

Blackstone (NYSE:BX) and Coinbase Global (NASDAQ:COIN) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Blackstone and Coinbase Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackstone	0	11	13	0	2.54
Coinbase Global	5	9	18	0	2.41

Blackstone currently has a consensus price target of $149.43, suggesting a potential upside of 11.60%. Coinbase Global has a consensus price target of $216.87, suggesting a potential upside of 21.20%. Given Coinbase Global’s higher possible upside, analysts clearly believe Coinbase Global is more favorable than Blackstone.

Valuation and Earnings

This table compares Blackstone and Coinbase Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackstone	$13.61 billion	7.38	$3.02 billion	$4.47	29.95
Coinbase Global	$7.18 billion	6.57	$1.26 billion	($3.84)	-46.60

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

Volatility and Risk

Blackstone has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Coinbase Global has a beta of 3.39, indicating that its stock price is 239% more volatile than the S&P 500.

Insider and Institutional Ownership

70.0% of Blackstone shares are held by institutional investors. Comparatively, 68.8% of Coinbase Global shares are held by institutional investors. 1.0% of Blackstone shares are held by company insiders. Comparatively, 16.7% of Coinbase Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Blackstone and Coinbase Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackstone	21.84%	23.77%	10.06%
Coinbase Global	-15.72%	3.12%	1.54%

Summary

Blackstone beats Coinbase Global on 10 of the 14 factors compared between the two stocks.

About Blackstone

Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, infrastructure, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe, North America and Central America.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.