Contrasting CleanSpark (NASDAQ:CLSK) & Coinbase Global (NASDAQ:COIN)

Coinbase Global (NASDAQ:COIN) and CleanSpark (NASDAQ:CLSK) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Valuation and Earnings

This table compares Coinbase Global and CleanSpark”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$3.11 billion	24.27	$94.87 million	$5.86	51.42
CleanSpark	$378.97 million	8.47	-$145.78 million	($0.58)	-18.91

Coinbase Global has higher revenue and earnings than CleanSpark. CleanSpark is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Coinbase Global and CleanSpark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coinbase Global	29.76%	14.81%	0.41%
CleanSpark	-38.47%	-2.36%	-2.18%

Institutional and Insider Ownership

68.8% of Coinbase Global shares are held by institutional investors. Comparatively, 43.1% of CleanSpark shares are held by institutional investors. 23.4% of Coinbase Global shares are held by company insiders. Comparatively, 3.0% of CleanSpark shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Coinbase Global has a beta of 3.59, meaning that its stock price is 259% more volatile than the S&P 500. Comparatively, CleanSpark has a beta of 4.26, meaning that its stock price is 326% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Coinbase Global and CleanSpark, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coinbase Global	0	9	11	0	2.55
CleanSpark	0	0	7	0	3.00

Coinbase Global presently has a consensus price target of $289.06, indicating a potential downside of 4.06%. CleanSpark has a consensus price target of $22.57, indicating a potential upside of 105.76%. Given CleanSpark’s stronger consensus rating and higher possible upside, analysts clearly believe CleanSpark is more favorable than Coinbase Global.

Summary

Coinbase Global beats CleanSpark on 11 of the 14 factors compared between the two stocks.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.

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.