Iris Energy (NASDAQ:IREN) versus BitFuFu (NASDAQ:FUFU) Critical Analysis

Iris Energy (NASDAQ:IREN) and BitFuFu (NASDAQ:FUFU) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Profitability

This table compares Iris Energy and BitFuFu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iris Energy	N/A	N/A	N/A
BitFuFu	N/A	N/A	N/A

Earnings & Valuation

This table compares Iris Energy and BitFuFu”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iris Energy	$188.76 million	5.83	-$28.95 million	N/A	N/A
BitFuFu	$423.70 million	1.32	$10.49 million	N/A	N/A

BitFuFu has higher revenue and earnings than Iris Energy.

Analyst Ratings

This is a summary of current ratings and target prices for Iris Energy and BitFuFu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iris Energy	0	1	8	0	2.89
BitFuFu	0	0	0	0	N/A

Iris Energy currently has a consensus target price of $15.63, suggesting a potential upside of 108.06%. Given Iris Energy’s higher probable upside, analysts clearly believe Iris Energy is more favorable than BitFuFu.

Volatility & Risk

Iris Energy has a beta of 3.41, indicating that its share price is 241% more volatile than the S&P 500. Comparatively, BitFuFu has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.

Institutional & Insider Ownership

41.1% of Iris Energy shares are owned by institutional investors. Comparatively, 37.3% of BitFuFu shares are owned by institutional investors. 21.5% of Iris Energy shares are owned by company insiders. Comparatively, 35.0% of BitFuFu shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Iris Energy beats BitFuFu on 5 of the 8 factors compared between the two stocks.

About Iris Energy

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

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.