AGBA Group (NASDAQ:AGBAW) vs. Applied Digital (OTCMKTS:APLD) Critical Comparison

Applied Digital (OTCMKTS:APLD) and AGBA Group (NASDAQ:AGBAW) are both financial services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Applied Digital and AGBA Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Digital	-80.60%	-61.59%	-22.75%
AGBA Group	N/A	N/A	N/A

Institutional and Insider Ownership

53.8% of Applied Digital shares are owned by institutional investors. 23.7% of Applied Digital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Applied Digital and AGBA Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Digital	0	0	2	0	3.00
AGBA Group	0	0	0	0	N/A

Applied Digital currently has a consensus price target of $14.70, suggesting a potential upside of 226.67%. Given Applied Digital’s higher possible upside, equities analysts plainly believe Applied Digital is more favorable than AGBA Group.

Valuation and Earnings

This table compares Applied Digital and AGBA Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Digital	$114.66 million	4.79	-$44.65 million	($0.35)	-12.86
AGBA Group	$47.33 million	N/A	N/A	N/A	N/A

AGBA Group has lower revenue, but higher earnings than Applied Digital.

Summary

Applied Digital beats AGBA Group on 5 of the 8 factors compared between the two stocks.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

About AGBA Group

AGBA Group Holding Limited together with its subsidiaries provides wealth management and healthcare institution services in Hong Kong. The company operates through Platform Business, Distribution Business, Healthcare Business, and Fintech Business segments. The Platform Business segment operates as a financial supermarket that offers financial products, such as life insurance, pensions, property-casualty insurance, stock brokerage, mutual funds, money lending, and real estate agency services. This segment serves banks, financial institutions, family offices, brokers, and individual independent financial advisors. The Distribution Business segment provides personal financial advisory services; and financial services and products, including long-term life insurance, savings, and mortgages. The Healthcare Business segment operates self-operated medical centers and a network of healthcare service providers in the Hong Kong and Macau region. The Fintech Business segment provides assets and businesses in Europe and Hong Kong. The Fintech Business segment manages financial technology investments with a spectrum of services and value-added information in health, insurance, investments, and social sharing. The company was formerly known as AGBA Acquisition Limited and changed its name to AGBA Group Holding Limited. AGBA Group Holding Limited was founded in 1993 and is headquartered in Wan Chai, Hong Kong.