Hut 8 (NASDAQ:HUT) vs. Adeia (NASDAQ:ADEA) Head to Head Comparison

Hut 8 (NASDAQ:HUT) and Adeia (NASDAQ:ADEA) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hut 8	-188.59%	-0.97%	-0.36%
Adeia	26.05%	39.26%	17.50%

Volatility & Risk

Hut 8 has a beta of 4.62, suggesting that its stock price is 362% more volatile than the S&P 500. Comparatively, Adeia has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hut 8 and Adeia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	1	1	19	3	3.00
Adeia	0	2	4	0	2.67

Hut 8 currently has a consensus target price of $143.95, suggesting a potential upside of 60.61%. Adeia has a consensus target price of $37.60, suggesting a potential upside of 46.08%. Given Hut 8’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Hut 8 is more favorable than Adeia.

Institutional & Insider Ownership

31.8% of Hut 8 shares are held by institutional investors. Comparatively, 97.4% of Adeia shares are held by institutional investors. 10.4% of Hut 8 shares are held by company insiders. Comparatively, 2.0% of Adeia shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Hut 8 and Adeia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$235.12 million	46.99	-$226.15 million	($5.45)	-16.45
Adeia	$443.39 million	6.40	$111.07 million	$1.08	23.83

Adeia has higher revenue and earnings than Hut 8. Hut 8 is trading at a lower price-to-earnings ratio than Adeia, indicating that it is currently the more affordable of the two stocks.

Summary

Adeia beats Hut 8 on 8 of the 15 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 Adeia

Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, California.