Contrasting Kyndryl (NYSE:KD) and Bit Digital (NASDAQ:BTBT)

Kyndryl (NYSE:KD) and Bit Digital (NASDAQ:BTBT) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Valuation & Earnings

This table compares Kyndryl and Bit Digital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyndryl	$14.97 billion	0.21	$199.00 million	$0.37	38.83
Bit Digital	$122.84 million	2.77	-$80.32 million	($1.06)	-0.89

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kyndryl and Bit Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	7	0	0	1.78
Bit Digital	1	1	4	1	2.71

Kyndryl currently has a consensus target price of $16.50, indicating a potential upside of 14.85%. Bit Digital has a consensus target price of $4.38, indicating a potential upside of 364.44%. Given Bit Digital’s stronger consensus rating and higher possible upside, analysts clearly believe Bit Digital is more favorable than Kyndryl.

Volatility and Risk

Kyndryl has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 3.84, indicating that its stock price is 284% more volatile than the S&P 500.

Insider and Institutional Ownership

71.5% of Kyndryl shares are held by institutional investors. Comparatively, 47.7% of Bit Digital shares are held by institutional investors. 2.0% of Kyndryl shares are held by company insiders. Comparatively, 2.0% of Bit Digital 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 Kyndryl and Bit Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyndryl	0.58%	12.24%	1.33%
Bit Digital	-237.19%	-10.66%	-6.81%

Summary

Kyndryl beats Bit Digital on 9 of the 15 factors compared between the two stocks.

About Kyndryl

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.

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.