Head-To-Head Comparison: Atlanticus (NASDAQ:ATLC) versus BTC Digital (NASDAQ:BTCT)

Atlanticus (NASDAQ:ATLC) and BTC Digital (NASDAQ:BTCT) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Risk and Volatility

Atlanticus has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500. Comparatively, BTC Digital has a beta of 5.71, suggesting that its share price is 471% more volatile than the S&P 500.

Insider and Institutional Ownership

14.1% of Atlanticus shares are owned by institutional investors. Comparatively, 7.3% of BTC Digital shares are owned by institutional investors. 50.4% of Atlanticus shares are owned by company insiders. Comparatively, 0.2% of BTC Digital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Atlanticus and BTC Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlanticus	0	2	4	0	2.67
BTC Digital	1	0	0	0	1.00

Atlanticus currently has a consensus target price of $88.75, indicating a potential upside of 61.92%. Given Atlanticus’ stronger consensus rating and higher possible upside, analysts clearly believe Atlanticus is more favorable than BTC Digital.

Profitability

This table compares Atlanticus and BTC Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlanticus	7.46%	22.86%	2.86%
BTC Digital	N/A	N/A	N/A

Earnings and Valuation

This table compares Atlanticus and BTC Digital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlanticus	$368.79 million	2.25	$111.30 million	$5.63	9.74
BTC Digital	$11.68 million	0.88	-$1.99 million	($1.20)	-1.14

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

Summary

Atlanticus beats BTC Digital on 13 of the 14 factors compared between the two stocks.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.

About BTC Digital

BTC Digital Ltd. a crypto asset technology company engages in bitcoin mining business. It is also involved 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, China.