Financial Analysis: Bitfarms (NASDAQ:BITF) vs. Yext (NYSE:YEXT)

Bitfarms (NASDAQ:BITF) and Yext (NYSE:YEXT) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Bitfarms and Yext”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$229.28 million	10.35	-$138.65 million	($0.23)	-17.11
Yext	$446.58 million	1.20	$37.87 million	$0.07	76.50

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

Insider & Institutional Ownership

20.6% of Bitfarms shares are held by institutional investors. Comparatively, 71.0% of Yext shares are held by institutional investors. 9.5% of Bitfarms shares are held by insiders. Comparatively, 7.8% of Yext shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Bitfarms and Yext’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-48.26%	-4.48%	-3.71%
Yext	8.93%	43.47%	9.28%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bitfarms and Yext, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	6	0	2.62
Yext	1	3	2	0	2.17

Bitfarms presently has a consensus target price of $4.14, suggesting a potential upside of 5.21%. Yext has a consensus target price of $7.50, suggesting a potential upside of 40.06%. Given Yext’s higher possible upside, analysts clearly believe Yext is more favorable than Bitfarms.

Volatility & Risk

Bitfarms has a beta of 3.77, indicating that its share price is 277% more volatile than the S&P 500. Comparatively, Yext has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Summary

Yext beats Bitfarms on 9 of the 14 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.