Analyzing IREN (IREN) & The Competition

IREN (NASDAQ:IREN) is one of 958 public companies in the “Software” industry, but how does it contrast to its rivals? We will compare IREN to similar companies based on the strength of its risk, profitability, analyst recommendations, dividends, institutional ownership, earnings and valuation.

Profitability

This table compares IREN and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IREN	20.90%	-13.13%	-6.03%
IREN Competitors	-624.19%	42.89%	-8.23%

Insider & Institutional Ownership

41.1% of IREN shares are owned by institutional investors. Comparatively, 42.4% of shares of all “Software” companies are owned by institutional investors. 5.0% of IREN 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares IREN and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
IREN	$757.07 million	$86.94 million	91.79
IREN Competitors	$1.81 billion	$385.72 million	72.33

IREN’s rivals have higher revenue and earnings than IREN. IREN is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for IREN and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IREN	2	4	14	1	2.67
IREN Competitors	5356	20848	43511	1425	2.58

IREN presently has a consensus target price of $83.00, suggesting a potential upside of 88.38%. As a group, “Software” companies have a potential upside of 273.08%. Given IREN’s rivals higher probable upside, analysts plainly believe IREN has less favorable growth aspects than its rivals.

Risk & Volatility

IREN has a beta of 4.29, meaning that its stock price is 329% more volatile than the S&P 500. Comparatively, IREN’s rivals have a beta of 1.04, meaning that their average stock price is 4% more volatile than the S&P 500.

Summary

IREN beats its rivals on 7 of the 13 factors compared.

About IREN

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.