Comparing TeraWulf (NASDAQ:WULF) & MGT Capital Investments (OTCMKTS:MGTI)

MGT Capital Investments (OTCMKTS:MGTI) and TeraWulf (NASDAQ:WULF) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Volatility & Risk

MGT Capital Investments has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.7, suggesting that its share price is 170% more volatile than the S&P 500.

Earnings and Valuation

This table compares MGT Capital Investments and TeraWulf”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGT Capital Investments	$400,000.00	0.86	-$6.13 million	N/A	N/A
TeraWulf	$140.05 million	7.44	-$73.42 million	($0.20)	-13.60

MGT Capital Investments has higher earnings, but lower revenue than TeraWulf.

Profitability

This table compares MGT Capital Investments and TeraWulf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGT Capital Investments	N/A	N/A	N/A
TeraWulf	-41.88%	-15.91%	-11.67%

Institutional and Insider Ownership

62.5% of TeraWulf shares are owned by institutional investors. 3.8% of MGT Capital Investments shares are owned by insiders. Comparatively, 24.9% of TeraWulf shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MGT Capital Investments and TeraWulf, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGT Capital Investments	0	0	0	0	0.00
TeraWulf	0	1	6	2	3.11

TeraWulf has a consensus price target of $9.50, indicating a potential upside of 249.26%. Given TeraWulf’s stronger consensus rating and higher probable upside, analysts plainly believe TeraWulf is more favorable than MGT Capital Investments.

Summary

TeraWulf beats MGT Capital Investments on 9 of the 13 factors compared between the two stocks.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.

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.