Critical Review: TSS (NASDAQ:TSSI) versus Bit Digital (NASDAQ:BTBT)

TSS (NASDAQ:TSSI) and Bit Digital (NASDAQ:BTBT) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Volatility & Risk

TSS has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 4.02, indicating that its stock price is 302% more volatile than the S&P 500.

Insider & Institutional Ownership

47.7% of Bit Digital shares are held by institutional investors. 16.0% of TSS shares are held by insiders. Comparatively, 2.0% of Bit Digital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares TSS and Bit Digital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TSS	$245.72 million	1.03	$15.12 million	$0.48	18.84
Bit Digital	$113.56 million	3.92	-$80.32 million	($1.06)	-1.17

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for TSS and Bit Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TSS	0	2	2	0	2.50
Bit Digital	1	1	3	0	2.40

TSS presently has a consensus price target of $16.17, suggesting a potential upside of 78.74%. Bit Digital has a consensus price target of $5.12, suggesting a potential upside of 314.98%. Given Bit Digital’s higher probable upside, analysts plainly believe Bit Digital is more favorable than TSS.

Profitability

This table compares TSS and Bit Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TSS	7.44%	19.22%	8.46%
Bit Digital	-237.19%	-10.66%	-6.81%

Summary

TSS beats Bit Digital on 9 of the 14 factors compared between the two stocks.

About TSS

TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.

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.