Bit Digital (NASDAQ:BTBT – Get Free Report) and BTCS (NASDAQ:BTCS – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Insider and Institutional Ownership
47.7% of Bit Digital shares are owned by institutional investors. Comparatively, 3.5% of BTCS shares are owned by institutional investors. 41.3% of Bit Digital shares are owned by company insiders. Comparatively, 40.2% of BTCS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and price targets for Bit Digital and BTCS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bit Digital | 0 | 0 | 2 | 0 | 3.00 |
| BTCS | 0 | 0 | 1 | 0 | 3.00 |
Profitability
This table compares Bit Digital and BTCS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bit Digital | -30.93% | -6.20% | -5.04% |
| BTCS | 583.51% | -38.81% | -31.40% |
Valuation and Earnings
This table compares Bit Digital and BTCS’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bit Digital | $44.92 million | 4.24 | -$13.89 million | ($0.16) | -14.44 |
| BTCS | $1.34 million | 17.91 | $7.82 million | $0.56 | 2.73 |
BTCS has lower revenue, but higher earnings than Bit Digital. Bit Digital is trading at a lower price-to-earnings ratio than BTCS, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Bit Digital has a beta of 4.76, suggesting that its share price is 376% more volatile than the S&P 500. Comparatively, BTCS has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.
Summary
Bit Digital beats BTCS on 8 of the 13 factors compared between the two stocks.
About Bit Digital
Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.
About BTCS
BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.
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