Upstart (NASDAQ:UPST – Get Free Report) and Stronghold Digital Mining (NASDAQ:SDIG – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Volatility & Risk
Upstart has a beta of 2.25, indicating that its share price is 125% more volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500.
Insider and Institutional Ownership
63.0% of Upstart shares are held by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are held by institutional investors. 18.1% of Upstart shares are held by company insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Upstart | -20.20% | -25.87% | -7.95% |
| Stronghold Digital Mining | -11.21% | 13.67% | 3.59% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Upstart and Stronghold Digital Mining, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Upstart | 2 | 7 | 5 | 0 | 2.21 |
| Stronghold Digital Mining | 0 | 1 | 1 | 1 | 3.00 |
Upstart presently has a consensus target price of $73.38, indicating a potential upside of 33.43%. Stronghold Digital Mining has a consensus target price of $6.17, indicating a potential upside of 119.45%. Given Stronghold Digital Mining’s stronger consensus rating and higher possible upside, analysts plainly believe Stronghold Digital Mining is more favorable than Upstart.
Earnings and Valuation
This table compares Upstart and Stronghold Digital Mining”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Upstart | $628.83 million | 8.20 | -$128.58 million | ($1.46) | -37.67 |
| Stronghold Digital Mining | $79.53 million | 0.61 | -$71.40 million | ($3.70) | -0.76 |
Stronghold Digital Mining has lower revenue, but higher earnings than Upstart. Upstart is trading at a lower price-to-earnings ratio than Stronghold Digital Mining, indicating that it is currently the more affordable of the two stocks.
Summary
Stronghold Digital Mining beats Upstart on 10 of the 15 factors compared between the two stocks.
About Upstart
Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions. Upstart Holdings, Inc. was founded in 2012 and is headquartered in San Mateo, California.
About Stronghold Digital Mining
Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.
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