Comparing MGT Capital Investments (OTCMKTS:MGTI) and Bit Digital (NASDAQ:BTBT)

Bit Digital (NASDAQ:BTBT) and MGT Capital Investments (OTCMKTS:MGTI) 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 profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

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

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

Bit Digital currently has a consensus price target of $6.33, suggesting a potential upside of 66.23%.

Profitability

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

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

Insider and Institutional Ownership

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bit Digital	$86.85 million	3.62	-$13.89 million	$0.24	15.88
MGT Capital Investments	$400,000.00	0.00	-$6.13 million	N/A	N/A

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

Risk & Volatility

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

Summary

Bit Digital beats MGT Capital Investments on 7 of the 10 factors compared between the two stocks.

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.

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.