BTC Digital (BTCT) & Its Peers Critical Analysis

BTC Digital (NASDAQ:BTCT) is one of 953 public companies in the “Software” industry, but how does it compare to its peers? We will compare BTC Digital to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for BTC Digital and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BTC Digital	1	1	0	0	1.50
BTC Digital Competitors	5754	21554	44939	1498	2.57

As a group, “Software” companies have a potential upside of 29.66%. Given BTC Digital’s peers stronger consensus rating and higher possible upside, analysts plainly believe BTC Digital has less favorable growth aspects than its peers.

Institutional & Insider Ownership

7.3% of BTC Digital shares are owned by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are owned by institutional investors. 0.2% of BTC Digital shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

BTC Digital has a beta of 5.72, indicating that its share price is 472% more volatile than the S&P 500. Comparatively, BTC Digital’s peers have a beta of 1.34, indicating that their average share price is 34% more volatile than the S&P 500.

Valuation and Earnings

This table compares BTC Digital and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BTC Digital	$14.04 million	-$9.06 million	-0.51
BTC Digital Competitors	$1.80 billion	$385.91 million	108.67

BTC Digital’s peers have higher revenue and earnings than BTC Digital. BTC Digital is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares BTC Digital and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BTC Digital	N/A	N/A	N/A
BTC Digital Competitors	-612.40%	21.13%	-8.86%

Summary

BTC Digital peers beat BTC Digital on 10 of the 13 factors compared.

About BTC Digital

BTC Digital Ltd. engages in the cryptocurrency/bitcoin mining business. It also engages in mining machines resale and rental business. The company was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023. The company was founded in 2006 and is headquartered in Shenzhen, the People's Republic of China.