Analyzing TeraWulf (NASDAQ:WULF) & Mercurity Fintech (NASDAQ:MFH)

TeraWulf (NASDAQ:WULF) and Mercurity Fintech (NASDAQ:MFH) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares TeraWulf and Mercurity Fintech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$69.23 million	28.04	-$73.42 million	N/A	N/A
Mercurity Fintech	$716,863.00	623.69	-$9.36 million	N/A	N/A

Mercurity Fintech has lower revenue, but higher earnings than TeraWulf.

Institutional and Insider Ownership

62.5% of TeraWulf shares are owned by institutional investors. Comparatively, 30.8% of Mercurity Fintech shares are owned by institutional investors. 24.9% of TeraWulf shares are owned by company insiders. Comparatively, 62.8% of Mercurity Fintech shares are owned by company 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.

Profitability

This table compares TeraWulf and Mercurity Fintech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeraWulf	-41.88%	-15.91%	-11.67%
Mercurity Fintech	N/A	N/A	N/A

Volatility and Risk

TeraWulf has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500. Comparatively, Mercurity Fintech has a beta of 3.45, meaning that its share price is 245% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for TeraWulf and Mercurity Fintech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeraWulf	0	1	7	2	3.10
Mercurity Fintech	0	0	0	0	0.00

TeraWulf presently has a consensus target price of $8.64, suggesting a potential upside of 71.83%. Given TeraWulf’s stronger consensus rating and higher possible upside, research analysts clearly believe TeraWulf is more favorable than Mercurity Fintech.

Summary

Mercurity Fintech beats TeraWulf on 7 of the 13 factors compared between the two stocks.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.

About Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.