Analyzing Bit Digital (NASDAQ:BTBT) and Owlet (NYSE:OWLT)

Owlet (NYSE:OWLT) and Bit Digital (NASDAQ:BTBT) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

72.6% of Owlet shares are held by institutional investors. Comparatively, 47.7% of Bit Digital shares are held by institutional investors. 52.2% of Owlet shares are held by insiders. Comparatively, 1.8% of Bit Digital 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.

Volatility and Risk

Owlet has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 3.94, suggesting that its stock price is 294% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Owlet and Bit Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Owlet	1	0	4	2	3.00
Bit Digital	0	1	2	0	2.67

Owlet currently has a consensus target price of $14.25, indicating a potential downside of 9.83%. Bit Digital has a consensus target price of $6.00, indicating a potential upside of 173.97%. Given Bit Digital’s higher probable upside, analysts clearly believe Bit Digital is more favorable than Owlet.

Earnings and Valuation

This table compares Owlet and Bit Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Owlet	$78.10 million	3.46	-$12.54 million	($2.95)	-5.36
Bit Digital	$108.05 million	6.56	$28.31 million	$0.42	5.21

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

Profitability

This table compares Owlet and Bit Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Owlet	-39.32%	N/A	-5.01%
Bit Digital	127.61%	-7.11%	-6.23%

Summary

Bit Digital beats Owlet on 8 of the 15 factors compared between the two stocks.

About Owlet

Owlet, Inc. provides digital parenting solutions in the United States and internationally. The company's platform focuses on giving real-time data and insights to parents. It offers Dream Sock, a wearable infant health monitor equipped with pulse oximetry technology to track vitals signs, such as pulse rate, oxygen, activity, and sleep patterns; BabySat which is intended for infants with heightened health risk; Owlet Cam, a monitoring device in smartphones that offers video and audio, predictive sleep insights, and cry detections; and accessories, including Owlet Sleeper, as well as Duo and Dream Duo that combines Smart Sock with the Owlet Cam. The company was founded in 2012 and is headquartered in Lehi, Utah.

About Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.