Critical Comparison: IREN (IREN) and The Competition

IREN (NASDAQ:IREN) is one of 959 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare IREN to similar companies based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Institutional & Insider Ownership

41.1% of IREN shares are held by institutional investors. Comparatively, 42.4% of shares of all “Software” companies are held by institutional investors. 5.0% of IREN shares are held by insiders. Comparatively, 19.8% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IREN	-99.38%	-15.46%	-5.51%
IREN Competitors	-630.38%	30.82%	-9.08%

Valuation & Earnings

This table compares IREN and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
IREN	$707.01 million	-$702.62 million	-15.83
IREN Competitors	$1.82 billion	$387.52 million	100.61

IREN’s peers have higher revenue and earnings than IREN. IREN 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.

Risk and Volatility

IREN has a beta of 4.29, meaning that its stock price is 329% more volatile than the S&P 500. Comparatively, IREN’s peers have a beta of 1.19, meaning that their average stock price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for IREN and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IREN	2	4	14	1	2.67
IREN Competitors	5448	21014	43907	1442	2.58

IREN presently has a consensus target price of $81.57, suggesting a potential upside of 120.23%. As a group, “Software” companies have a potential upside of 259.40%. Given IREN’s peers higher possible upside, analysts clearly believe IREN has less favorable growth aspects than its peers.

Summary

IREN peers beat IREN on 7 of the 13 factors compared.

About IREN

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.