Reviewing TeraWulf (NASDAQ:WULF) & MGT Capital Investments (OTCMKTS:MGTI)

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

Insider & Institutional Ownership

62.5% of TeraWulf shares are held by institutional investors. 24.9% of TeraWulf shares are held by insiders. Comparatively, 3.8% of MGT Capital Investments shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TeraWulf	-41.88%	-15.91%	-11.67%
MGT Capital Investments	N/A	N/A	N/A

Volatility & Risk

TeraWulf has a beta of 2.76, suggesting that its share price is 176% more volatile than the S&P 500. Comparatively, MGT Capital Investments has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for TeraWulf and MGT Capital Investments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeraWulf	0	1	7	2	3.10
MGT Capital Investments	0	0	0	0	0.00

TeraWulf presently has a consensus price target of $8.71, indicating a potential upside of 235.16%. Given TeraWulf’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TeraWulf is more favorable than MGT Capital Investments.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$140.05 million	7.11	-$73.42 million	($0.20)	-13.00
MGT Capital Investments	$400,000.00	1.71	-$6.13 million	N/A	N/A

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

Summary

TeraWulf beats MGT Capital Investments on 9 of the 13 factors compared between the two stocks.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.