Reviewing BitFuFu (NASDAQ:FUFU) and Guild (NYSE:GHLD)

BitFuFu (NASDAQ:FUFU) and Guild (NYSE:GHLD) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for BitFuFu and Guild, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BitFuFu	0	2	2	0	2.50
Guild	0	6	2	0	2.25

BitFuFu currently has a consensus price target of $6.6033, suggesting a potential upside of 89.21%. Guild has a consensus price target of $18.4167, suggesting a potential downside of 7.34%. Given BitFuFu’s stronger consensus rating and higher probable upside, analysts clearly believe BitFuFu is more favorable than Guild.

Risk and Volatility

BitFuFu has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Guild has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Valuation and Earnings

This table compares BitFuFu and Guild”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BitFuFu	$463.33 million	1.24	$53.96 million	$0.02	174.50
Guild	$1.05 billion	1.18	$97.13 million	$0.69	28.80

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

Profitability

This table compares BitFuFu and Guild’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BitFuFu	0.46%	1.34%	0.55%
Guild	4.40%	7.91%	2.06%

Institutional & Insider Ownership

37.3% of BitFuFu shares are held by institutional investors. Comparatively, 17.5% of Guild shares are held by institutional investors. 35.0% of BitFuFu shares are held by company insiders. Comparatively, 78.5% of Guild shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Guild beats BitFuFu on 8 of the 13 factors compared between the two stocks.

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.

About Guild

Guild Holdings Company originates, sells, and services residential mortgage loans in the United States. It operates in two segments, Origination and Servicing. The company offers residential mortgages through retail and correspondent channels. Guild Holdings Company was incorporated in 1960 and is headquartered in San Diego, California.