Financial Survey: TeraWulf (NASDAQ:WULF) versus Bitcoin Depot (NASDAQ:BTM)

Bitcoin Depot (NASDAQ:BTM) and TeraWulf (NASDAQ:WULF) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Bitcoin Depot and TeraWulf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitcoin Depot	0	1	2	0	2.67
TeraWulf	0	0	7	2	3.22

Bitcoin Depot presently has a consensus price target of $3.67, indicating a potential upside of 144.44%. TeraWulf has a consensus price target of $5.71, indicating a potential upside of 35.73%. Given Bitcoin Depot’s higher probable upside, research analysts clearly believe Bitcoin Depot is more favorable than TeraWulf.

Earnings and Valuation

This table compares Bitcoin Depot and TeraWulf”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$688.97 million	0.13	-$26.10 million	($1.31)	-1.15
TeraWulf	$120.25 million	11.67	-$73.42 million	N/A	N/A

Bitcoin Depot has higher revenue and earnings than TeraWulf.

Insider and Institutional Ownership

9.2% of Bitcoin Depot shares are owned by institutional investors. Comparatively, 62.5% of TeraWulf shares are owned by institutional investors. 20.1% of Bitcoin Depot shares are owned by company insiders. Comparatively, 24.9% of TeraWulf shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Bitcoin Depot has a beta of -0.35, suggesting that its stock price is 135% less volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.55, suggesting that its stock price is 155% more volatile than the S&P 500.

Profitability

This table compares Bitcoin Depot and TeraWulf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitcoin Depot	-3.10%	-307.37%	-22.72%
TeraWulf	-41.67%	-19.77%	-12.61%

Summary

TeraWulf beats Bitcoin Depot on 9 of the 13 factors compared between the two stocks.

About Bitcoin Depot

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.