Critical Analysis: MGT Capital Investments (OTCMKTS:MGTI) & Bit Digital (NASDAQ:BTBT)

MGT Capital Investments (OTCMKTS:MGTI) and Bit Digital (NASDAQ:BTBT) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Profitability

This table compares MGT Capital Investments and Bit Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGT Capital Investments	N/A	N/A	N/A
Bit Digital	33.30%	-1.48%	-1.28%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for MGT Capital Investments and Bit Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGT Capital Investments	0	0	0	0	N/A
Bit Digital	0	0	2	1	3.33

Bit Digital has a consensus price target of $6.33, suggesting a potential upside of 61.15%. Given Bit Digital’s higher possible upside, analysts clearly believe Bit Digital is more favorable than MGT Capital Investments.

Institutional & Insider Ownership

47.7% of Bit Digital shares are held by institutional investors. 3.8% of MGT Capital Investments shares are held by insiders. Comparatively, 41.3% of Bit Digital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

MGT Capital Investments has a beta of 2.76, meaning that its share price is 176% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 4.79, meaning that its share price is 379% more volatile than the S&P 500.

Earnings & Valuation

This table compares MGT Capital Investments and Bit Digital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGT Capital Investments	$400,000.00	0.29	-$6.13 million	N/A	N/A
Bit Digital	$86.85 million	3.73	-$13.89 million	$0.30	13.10

MGT Capital Investments has higher earnings, but lower revenue than Bit Digital.

Summary

Bit Digital beats MGT Capital Investments on 9 of the 12 factors compared between the two stocks.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.

About Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.