CleanSpark (NASDAQ:CLSK) versus Hargreaves Lansdown (OTCMKTS:HRGLY) Critical Analysis

Hargreaves Lansdown (OTCMKTS:HRGLY) and CleanSpark (NASDAQ:CLSK) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Hargreaves Lansdown and CleanSpark’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hargreaves Lansdown	$776.11 million	N/A	$287.92 million	N/A	N/A
CleanSpark	$342.81 million	7.87	-$136.59 million	N/A	N/A

Hargreaves Lansdown has higher revenue and earnings than CleanSpark.

Volatility & Risk

Hargreaves Lansdown has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, CleanSpark has a beta of 4.21, indicating that its share price is 321% more volatile than the S&P 500.

Profitability

This table compares Hargreaves Lansdown and CleanSpark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hargreaves Lansdown	N/A	N/A	N/A
CleanSpark	22.41%	-6.30%	-5.81%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hargreaves Lansdown and CleanSpark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hargreaves Lansdown	0	0	0	0	N/A
CleanSpark	0	1	5	0	2.83

CleanSpark has a consensus target price of $19.30, indicating a potential upside of 63.01%. Given CleanSpark’s higher possible upside, analysts clearly believe CleanSpark is more favorable than Hargreaves Lansdown.

Insider and Institutional Ownership

43.1% of CleanSpark shares are owned by institutional investors. 3.5% of CleanSpark shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

CleanSpark beats Hargreaves Lansdown on 6 of the 10 factors compared between the two stocks.

About Hargreaves Lansdown

Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, and junior and lifetime ISAs. It also provides pension services, including self-invested personal pensions (SIPP), junior SIPPs, annuities, and drawdown; share dealing services; and fund dealing services. In addition, the company offers investment accounts; cash savings; accounts for children; and foreign currency exchange, retirement, and financial advisory services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.

About CleanSpark

CleanSpark, Inc. operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.