Analyzing Hut 8 (HUT) & Its Rivals

Hut 8 (NASDAQ:HUT) is one of 959 public companies in the “Software” industry, but how does it contrast to its competitors? We will compare Hut 8 to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Institutional and Insider Ownership

31.8% of Hut 8 shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 10.4% of Hut 8 shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Hut 8 and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hut 8	$235.12 million	-$226.15 million	-12.65
Hut 8 Competitors	$1.79 billion	$382.68 million	112.20

Hut 8’s competitors have higher revenue and earnings than Hut 8. Hut 8 is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Hut 8 and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	1	1	18	4	3.04
Hut 8 Competitors	5840	21622	45013	1501	2.57

Hut 8 currently has a consensus price target of $134.05, indicating a potential upside of 116.31%. As a group, “Software” companies have a potential upside of 28.25%. Given Hut 8’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hut 8 is more favorable than its competitors.

Profitability

This table compares Hut 8 and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hut 8	-169.76%	-9.68%	-2.66%
Hut 8 Competitors	-599.60%	26.31%	-8.93%

Volatility & Risk

Hut 8 has a beta of 4.53, suggesting that its share price is 353% more volatile than the S&P 500. Comparatively, Hut 8’s competitors have a beta of 1.35, suggesting that their average share price is 35% more volatile than the S&P 500.

Summary

Hut 8 beats its competitors on 7 of the 12 factors compared.

Hut 8 Company Profile

Hut 8 is a North American energy and digital infrastructure company whose businesses include Bitcoin mining, data centers and computing services. It develops and operates facilities that support digital asset mining and other high-performance computing workloads. The company’s services include infrastructure and managed services for Bitcoin mining, as well as data center capacity and computing solutions. Hut 8 also works on developing and operating energy infrastructure to support its facilities.