MGT Capital Investments (OTCMKTS:MGTI) & CleanSpark (NASDAQ:CLSK) Critical Analysis

MGT Capital Investments (OTCMKTS:MGTI) and CleanSpark (NASDAQ:CLSK) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Volatility and Risk

MGT Capital Investments has a beta of 3.36, indicating that its stock price is 236% more volatile than the S&P 500. Comparatively, CleanSpark has a beta of 4.3, indicating that its stock price is 330% more volatile than the S&P 500.

Profitability

This table compares MGT Capital Investments and CleanSpark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGT Capital Investments	-1,888.47%	-202.89%	-598.61%
CleanSpark	-38.09%	-16.25%	-14.85%

Valuation and Earnings

This table compares MGT Capital Investments and CleanSpark’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGT Capital Investments	$400,000.00	3.30	-$6.13 million	N/A	N/A
CleanSpark	$168.41 million	18.99	-$136.59 million	N/A	N/A

MGT Capital Investments has higher earnings, but lower revenue than CleanSpark.

Insider & Institutional Ownership

43.1% of CleanSpark shares are held by institutional investors. 3.8% of MGT Capital Investments shares are held by company insiders. Comparatively, 3.5% of CleanSpark shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MGT Capital Investments and CleanSpark, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGT Capital Investments	0	0	0	0	N/A
CleanSpark	0	1	5	0	2.83

CleanSpark has a consensus price target of $19.22, suggesting a potential upside of 18.99%. Given CleanSpark’s higher possible upside, analysts clearly believe CleanSpark is more favorable than MGT Capital Investments.

Summary

CleanSpark beats MGT Capital Investments on 9 of the 11 factors compared between the two stocks.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. It also leases space to other bitcoin miners; and provides hosting services for owners of mining equipment. The company was incorporated in 1977 and is headquartered in Raleigh, North Carolina.

About CleanSpark

CleanSpark, Inc. operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.