Cipher Mining (CIFR) vs. Its Rivals Critical Analysis

Cipher Mining (NASDAQ:CIFR) is one of 959 public companies in the “Software” industry, but how does it compare to its peers? We will compare Cipher Mining to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

12.3% of Cipher Mining shares are owned by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are owned by institutional investors. 3.1% of Cipher Mining shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cipher Mining and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cipher Mining	$223.94 million	-$822.24 million	-2.23
Cipher Mining Competitors	$1.79 billion	$382.68 million	111.80

Cipher Mining’s peers have higher revenue and earnings than Cipher Mining. Cipher Mining is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Cipher Mining and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cipher Mining	1	4	15	0	2.70
Cipher Mining Competitors	5842	21623	45020	1501	2.57

Cipher Mining presently has a consensus target price of $21.38, indicating a potential upside of 211.59%. As a group, “Software” companies have a potential upside of 28.62%. Given Cipher Mining’s stronger consensus rating and higher possible upside, research analysts plainly believe Cipher Mining is more favorable than its peers.

Risk and Volatility

Cipher Mining has a beta of 3.53, suggesting that its share price is 253% more volatile than the S&P 500. Comparatively, Cipher Mining’s peers have a beta of 1.36, suggesting that their average share price is 36% more volatile than the S&P 500.

Profitability

This table compares Cipher Mining and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cipher Mining	-742.33%	-161.74%	-16.78%
Cipher Mining Competitors	-599.60%	26.31%	-8.93%

Summary

Cipher Mining peers beat Cipher Mining on 9 of the 13 factors compared.

About Cipher Mining

Cipher Mining Inc. is a U.S.-based bitcoin mining company that develops and operates data centers designed to support large-scale mining operations. Its facilities house specialized computing equipment that helps process transactions and secure the Bitcoin network. The company’s operations and development activities are concentrated in the United States, including sites in Texas. Its work includes building and managing mining infrastructure and sourcing the energy and equipment needed to run its facilities.