Financial Review: Bit Digital (NASDAQ:BTBT) & Skillsoft (NYSE:SKIL)

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

Valuation & Earnings

This table compares Skillsoft and Bit Digital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillsoft	$512.67 million	0.13	-$139.82 million	($16.28)	-0.45
Bit Digital	$113.56 million	6.21	-$80.32 million	($0.68)	-2.97

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

Volatility & Risk

Skillsoft has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 3.95, suggesting that its share price is 295% more volatile than the S&P 500.

Insider and Institutional Ownership

87.0% of Skillsoft shares are owned by institutional investors. Comparatively, 47.7% of Bit Digital shares are owned by institutional investors. 16.2% of Skillsoft shares are owned by insiders. Comparatively, 1.8% of Bit Digital shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skillsoft	-27.27%	112.12%	2.30%
Bit Digital	-145.39%	-8.44%	-6.24%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Skillsoft and Bit Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillsoft	1	1	0	0	1.50
Bit Digital	2	0	2	0	2.00

Bit Digital has a consensus target price of $5.67, indicating a potential upside of 180.53%. Given Bit Digital’s stronger consensus rating and higher possible upside, analysts clearly believe Bit Digital is more favorable than Skillsoft.

About Skillsoft

Skillsoft Corp. provides content and platform and instructor-led training services in the United States and internationally. The company's Content & Platform segment engages in the sale, marketing, and delivery of its content learning solutions in areas, such as leadership and business, technology and developer, and compliance comprising individualized coaching, as well as technical skill areas. This segment also offers Percipio, an AI-driven online learning platform that delivers a learning experience through SaaS solutions. Its Instructor-Led Training segment provides training solutions, including information technology and business skills for corporations and their employees by guiding its customers throughout their lifelong technology learning journey by offering relevant and up-to-date skills training through instructor-led and self-paced, vendor certified, and other proprietary offerings. The company markets and sells their offerings to businesses of many sizes, government agencies, educational institutions, and resellers. Skillsoft Corp. is headquartered in Greenwood Village, Colorado.

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.