Financial Analysis: CleanSpark (NASDAQ:CLSK) vs. Mercurity Fintech (NASDAQ:MFH)

CleanSpark (NASDAQ:CLSK) and Mercurity Fintech (NASDAQ:MFH) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Volatility and Risk

CleanSpark has a beta of 4.2, indicating that its stock price is 320% more volatile than the S&P 500. Comparatively, Mercurity Fintech has a beta of 3.47, indicating that its stock price is 247% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CleanSpark	$467.49 million	4.79	-$145.78 million	$0.11	72.55
Mercurity Fintech	$716,863.00	393.73	-$9.36 million	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CleanSpark	16.07%	-2.61%	-2.24%
Mercurity Fintech	N/A	N/A	N/A

Insider & Institutional Ownership

43.1% of CleanSpark shares are owned by institutional investors. Comparatively, 30.8% of Mercurity Fintech shares are owned by institutional investors. 2.7% of CleanSpark shares are owned by insiders. Comparatively, 62.8% of Mercurity Fintech shares are owned by 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.

Analyst Ratings

This is a breakdown of current recommendations for CleanSpark and Mercurity Fintech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CleanSpark	0	0	8	0	3.00
Mercurity Fintech	0	0	0	0	0.00

CleanSpark presently has a consensus target price of $22.25, indicating a potential upside of 178.82%. Given CleanSpark’s stronger consensus rating and higher probable upside, analysts plainly believe CleanSpark is more favorable than Mercurity Fintech.

Summary

CleanSpark beats Mercurity Fintech on 7 of the 12 factors compared between the two stocks.

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.

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.