Digihost Technology (NASDAQ:DGHI) & Burford Capital (NYSE:BUR) Financial Review

Digihost Technology (NASDAQ:DGHI) and Burford Capital (NYSE:BUR) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Earnings and Valuation

This table compares Digihost Technology and Burford Capital’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digihost Technology	$38.33 million	0.97	-$21.89 million	($0.29)	-4.34
Burford Capital	$563.24 million	5.07	$610.52 million	$1.43	9.12

Burford Capital has higher revenue and earnings than Digihost Technology. Digihost Technology is trading at a lower price-to-earnings ratio than Burford Capital, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

1.9% of Digihost Technology shares are held by institutional investors. 0.2% of Burford Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Digihost Technology and Burford Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digihost Technology	0	0	1	0	3.00
Burford Capital	0	0	3	0	3.00

Digihost Technology presently has a consensus target price of $2.50, indicating a potential upside of 98.41%. Burford Capital has a consensus target price of $20.17, indicating a potential upside of 54.65%. Given Digihost Technology’s higher possible upside, research analysts clearly believe Digihost Technology is more favorable than Burford Capital.

Risk and Volatility

Digihost Technology has a beta of 5.41, indicating that its stock price is 441% more volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares Digihost Technology and Burford Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digihost Technology	-25.38%	-20.93%	-15.75%
Burford Capital	42.81%	10.61%	5.70%

Summary

Burford Capital beats Digihost Technology on 10 of the 13 factors compared between the two stocks.

About Digihost Technology

Digihost Technology Inc. operates as a blockchain technology company in the United States and Canada. The company operates through Cryptocurrency Mining, Sales of Energy, and Colocation Services segments. It also mines for cryptocurrency; and supplies energy from power plants. Digihost Technology Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

About Burford Capital

Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.