Bitfarms (NASDAQ:BITF – Get Free Report) and Alarum Technologies (NASDAQ:ALAR – Get Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Volatility & Risk
Bitfarms has a beta of 3.77, indicating that its stock price is 277% more volatile than the S&P 500. Comparatively, Alarum Technologies has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Bitfarms and Alarum Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bitfarms | 1 | 1 | 7 | 0 | 2.67 |
| Alarum Technologies | 1 | 0 | 1 | 0 | 2.00 |
Earnings & Valuation
This table compares Bitfarms and Alarum Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bitfarms | $229.28 million | 7.99 | -$138.65 million | ($0.23) | -13.22 |
| Alarum Technologies | $40.76 million | 1.24 | $960,000.00 | $0.14 | 49.71 |
Alarum Technologies has lower revenue, but higher earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Alarum Technologies, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
20.6% of Bitfarms shares are held by institutional investors. Comparatively, 3.2% of Alarum Technologies shares are held by institutional investors. 9.5% of Bitfarms shares are held by insiders. Comparatively, 2.7% of Alarum Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Bitfarms and Alarum Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bitfarms | -48.26% | -4.48% | -3.71% |
| Alarum Technologies | 2.36% | 15.59% | 11.72% |
About Bitfarms
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.
About Alarum Technologies
Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.
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