Comparing Qudian (NYSE:QD) and Bitfarms (NASDAQ:BITF)

Bitfarms (NASDAQ:BITF) and Qudian (NYSE:QD) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Profitability

This table compares Bitfarms and Qudian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-62.79%	-18.94%	-16.08%
Qudian	-134.42%	-2.35%	-2.21%

Earnings & Valuation

This table compares Bitfarms and Qudian”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$172.70 million	4.74	-$104.04 million	($0.38)	-5.26
Qudian	$17.79 million	20.64	$5.51 million	($0.30)	-6.10

Qudian has lower revenue, but higher earnings than Bitfarms. Qudian is trading at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Bitfarms has a beta of 3.64, suggesting that its stock price is 264% more volatile than the S&P 500. Comparatively, Qudian has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bitfarms and Qudian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	0	1	4	0	2.80
Qudian	0	0	0	0	N/A

Bitfarms presently has a consensus price target of $3.66, indicating a potential upside of 83.00%. Given Bitfarms’ higher probable upside, analysts clearly believe Bitfarms is more favorable than Qudian.

Insider and Institutional Ownership

20.6% of Bitfarms shares are held by institutional investors. Comparatively, 8.1% of Qudian shares are held by institutional investors. 9.5% of Bitfarms shares are held by company insiders. Comparatively, 25.7% of Qudian shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Bitfarms beats Qudian on 7 of the 13 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

About Qudian

Qudian Inc. operates as a consumer-oriented technology company in the People's Republic of China. The company engages in the operation of online platforms to provide small consumer credit products. It also provides technology development and services; research and development services; and delivery services. The company was founded in 2014 and is headquartered in Xiamen, the People's Republic of China.