Contrasting Soluna (NASDAQ:SLNH) and Kyndryl (NYSE:KD)

Kyndryl (NYSE:KD) and Soluna (NASDAQ:SLNH) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Risk & Volatility

Kyndryl has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, Soluna has a beta of 4.56, meaning that its share price is 356% more volatile than the S&P 500.

Insider & Institutional Ownership

71.5% of Kyndryl shares are held by institutional investors. Comparatively, 23.2% of Soluna shares are held by institutional investors. 1.9% of Kyndryl shares are held by company insiders. Comparatively, 10.1% of Soluna shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyndryl	$15.06 billion	0.18	$251.00 million	$1.05	11.71
Soluna	$38.02 million	1.72	-$63.33 million	($8.86)	-0.11

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

Analyst Recommendations

This is a breakdown of recent recommendations for Kyndryl and Soluna, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	4	2	0	2.00
Soluna	1	0	1	0	2.00

Kyndryl presently has a consensus target price of $29.00, suggesting a potential upside of 135.77%. Soluna has a consensus target price of $5.00, suggesting a potential upside of 421.92%. Given Soluna’s higher possible upside, analysts plainly believe Soluna is more favorable than Kyndryl.

Profitability

This table compares Kyndryl and Soluna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyndryl	1.65%	25.91%	3.10%
Soluna	-274.18%	-170.50%	-63.47%

Summary

Kyndryl beats Soluna on 9 of the 13 factors compared between the two stocks.

About Kyndryl

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.

About Soluna

Soluna Holdings, Inc. together with its subsidiaries, engages in the mining of cryptocurrency through data centers. It operates through two segments, Cryptocurrency Mining and Data Center Hosting. The company also operates in the blockchain business. In addition, the company develops and builds modular data centers that use for cryptocurrency mining. Further, it provides data center hosting services, including electrical power and network connectivity to cryptocurrency mining customers. The company was formerly known as Mechanical Technology Inc and as changed to Soluna Holdings, Inc. Soluna Holdings, Inc. was incorporated in 1961 and is headquartered in Albany, New York.