Applied Digital (NASDAQ:APLD – Get Free Report) and MSP Recovery (NASDAQ:LIFW – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
Volatility and Risk
Applied Digital has a beta of 4.38, meaning that its share price is 338% more volatile than the S&P 500. Comparatively, MSP Recovery has a beta of -2.31, meaning that its share price is 331% less volatile than the S&P 500.
Institutional and Insider Ownership
65.7% of Applied Digital shares are owned by institutional investors. Comparatively, 3.8% of MSP Recovery shares are owned by institutional investors. 20.5% of Applied Digital shares are owned by company insiders. Comparatively, 19.4% of MSP Recovery shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Digital | 0 | 0 | 5 | 0 | 3.00 |
| MSP Recovery | 0 | 0 | 0 | 0 | N/A |
Applied Digital presently has a consensus price target of $8.40, indicating a potential upside of 29.23%. Given Applied Digital’s higher possible upside, analysts clearly believe Applied Digital is more favorable than MSP Recovery.
Profitability
This table compares Applied Digital and MSP Recovery’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Digital | -61.84% | -75.46% | -20.50% |
| MSP Recovery | -724.07% | -3.70% | -1.76% |
Earnings & Valuation
This table compares Applied Digital and MSP Recovery’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Digital | $143.91 million | 6.20 | -$44.65 million | ($0.79) | -8.23 |
| MSP Recovery | $7.70 million | 8.03 | -$56.35 million | ($6.26) | -0.07 |
Applied Digital has higher revenue and earnings than MSP Recovery. Applied Digital is trading at a lower price-to-earnings ratio than MSP Recovery, indicating that it is currently the more affordable of the two stocks.
Summary
Applied Digital beats MSP Recovery on 9 of the 13 factors compared between the two stocks.
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
About MSP Recovery
MSP Recovery, Inc., doing business as LifeWallet, operates as a healthcare recovery and data analytics company in the United States and Puerto Rico. The company offers claims recovery services, including services to related parties or third parties to assist entities with pursuit of claims recovery rights. It also provides LifeWallet, a scalable and expandable data ecosystem where tokenized data is stored in a platform with multiple applications, including LifeWallet EHR for hospitals, medical providers, major medical laboratories, and governmental entities that gather and store electronic health records; Chase to Pay, a real-time, or near real-time analytics driven platform that identifies the proper primary payer at the point of care; LifeChain which is in development in order to tokenize healthcare claims and patient records using blockchain technology; LifeWallet 911 which is in development for utilization by emergency service organizations; LifeWallet Legal; LifeWallet Health; and LifeWallet Sports which connected brands with college athletes. MSP Recovery, Inc. was founded in 2014 and is headquartered in Coral Gables, Florida.
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