Analyzing CleanSpark (NASDAQ:CLSK) & Coinbase Global (NASDAQ:COIN)

Coinbase Global (NASDAQ:COIN) and CleanSpark (NASDAQ:CLSK) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Coinbase Global and CleanSpark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coinbase Global	1	9	10	0	2.45
CleanSpark	0	0	6	0	3.00

Coinbase Global presently has a consensus target price of $286.22, suggesting a potential upside of 15.27%. CleanSpark has a consensus target price of $23.17, suggesting a potential upside of 151.54%. Given CleanSpark’s stronger consensus rating and higher possible upside, analysts clearly believe CleanSpark is more favorable than Coinbase Global.

Insider and Institutional Ownership

68.8% of Coinbase Global shares are held by institutional investors. Comparatively, 43.1% of CleanSpark shares are held by institutional investors. 23.4% of Coinbase Global shares are held by company insiders. Comparatively, 3.0% of CleanSpark shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Coinbase Global has a beta of 3.57, meaning that its stock price is 257% more volatile than the S&P 500. Comparatively, CleanSpark has a beta of 4.16, meaning that its stock price is 316% more volatile than the S&P 500.

Profitability

This table compares Coinbase Global and CleanSpark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coinbase Global	29.76%	14.81%	0.41%
CleanSpark	-38.47%	-2.36%	-2.18%

Earnings and Valuation

This table compares Coinbase Global and CleanSpark”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$5.25 billion	11.85	$94.87 million	$5.86	42.37
CleanSpark	$378.97 million	7.11	-$145.78 million	($0.58)	-15.88

Coinbase Global has higher revenue and earnings than CleanSpark. CleanSpark is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.

Summary

Coinbase Global beats CleanSpark on 11 of the 14 factors compared between the two stocks.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.

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.