Bitfarms (NASDAQ:BITF) vs. Alphabet (NASDAQ:GOOGL) Financial Analysis

Bitfarms (NASDAQ:BITFGet Rating) and Alphabet (NASDAQ:GOOGLGet Rating) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Valuation & Earnings

This table compares Bitfarms and Alphabet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bitfarms $169.49 million 2.38 $22.13 million $0.10 20.30
Alphabet $257.64 billion 5.93 $76.03 billion $110.56 20.99

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

Institutional & Insider Ownership

17.2% of Bitfarms shares are held by institutional investors. Comparatively, 41.7% of Alphabet shares are held by institutional investors. 13.2% of Alphabet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bitfarms and Alphabet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitfarms 0 0 1 0 3.00
Alphabet 0 1 33 1 3.00

Bitfarms presently has a consensus price target of $8.00, suggesting a potential upside of 294.09%. Alphabet has a consensus price target of $3,351.83, suggesting a potential upside of 44.41%. Given Bitfarms’ higher possible upside, equities research analysts plainly believe Bitfarms is more favorable than Alphabet.

Profitability

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

Net Margins Return on Equity Return on Assets
Bitfarms 13.06% 9.38% 7.80%
Alphabet 27.57% 30.18% 21.31%

Summary

Alphabet beats Bitfarms on 12 of the 13 factors compared between the two stocks.

Bitfarms Company Profile (Get Rating)

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in North America. 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 headquartered in Toronto, Canada.

Alphabet Company Profile (Get Rating)

Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment offers products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play store; and Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Cloud segment offers infrastructure, platform, and other services; Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells health technology and internet services. The company was founded in 1998 and is headquartered in Mountain View, California.

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