Reviewing Soluna (NASDAQ:SLNH) & Hut 8 (NASDAQ:HUT)

Hut 8 (NASDAQ:HUT) and Soluna (NASDAQ:SLNH) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Institutional & Insider Ownership

31.8% of Hut 8 shares are owned by institutional investors. Comparatively, 23.2% of Soluna shares are owned by institutional investors. 11.2% of Hut 8 shares are owned by company insiders. Comparatively, 27.3% of Soluna shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hut 8 and Soluna”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$254.83 million	7.59	-$186.77 million	N/A	N/A
Soluna	$31.41 million	0.28	-$29.20 million	($11.29)	-0.06

Soluna has lower revenue, but higher earnings than Hut 8.

Risk and Volatility

Hut 8 has a beta of 4.32, suggesting that its share price is 332% more volatile than the S&P 500. Comparatively, Soluna has a beta of 3.75, suggesting that its share price is 275% more volatile than the S&P 500.

Profitability

This table compares Hut 8 and Soluna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hut 8	N/A	N/A	N/A
Soluna	-75.30%	-45.29%	-24.41%

Analyst Ratings

This is a summary of current ratings and price targets for Hut 8 and Soluna, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	0	0	16	3	3.16
Soluna	0	0	0	0	0.00

Hut 8 presently has a consensus target price of $25.76, suggesting a potential upside of 38.74%. Given Hut 8’s stronger consensus rating and higher probable upside, research analysts clearly believe Hut 8 is more favorable than Soluna.

Summary

Hut 8 beats Soluna on 11 of the 13 factors compared between the two stocks.

About Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.

About Soluna

Soluna Holdings, Inc. together with its subsidiaries, engages in the mining of cryptocurrency through data centers. It operates through two segments, Cryptocurrency Mining and Data Center Hosting. The company also operates in the blockchain business. In addition, the company develops and builds modular data centers that use for cryptocurrency mining. Further, it provides data center hosting services, including electrical power and network connectivity to cryptocurrency mining customers. The company was formerly known as Mechanical Technology Inc and as changed to Soluna Holdings, Inc. Soluna Holdings, Inc. was incorporated in 1961 and is headquartered in Albany, New York.