Bitfarms (NASDAQ:BITF) versus Magic Empire Global (NASDAQ:MEGL) Critical Review

Magic Empire Global (NASDAQ:MEGL) and Bitfarms (NASDAQ:BITF) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

Magic Empire Global has a beta of 2.89, meaning that its stock price is 189% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.68, meaning that its stock price is 268% more volatile than the S&P 500.

Earnings and Valuation

This table compares Magic Empire Global and Bitfarms’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magic Empire Global	$13.79 million	0.68	-$60,000.00	N/A	N/A
Bitfarms	$172.70 million	5.29	-$104.04 million	($0.38)	-5.87

Magic Empire Global has higher earnings, but lower revenue than Bitfarms.

Insider & Institutional Ownership

0.5% of Magic Empire Global shares are held by institutional investors. Comparatively, 20.6% of Bitfarms shares are held by institutional investors. 63.0% of Magic Empire Global shares are held by insiders. Comparatively, 9.5% of Bitfarms shares are held 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 breakdown of recent ratings and recommmendations for Magic Empire Global and Bitfarms, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magic Empire Global	0	0	0	0	N/A
Bitfarms	0	1	4	0	2.80

Bitfarms has a consensus price target of $3.66, indicating a potential upside of 64.13%. Given Bitfarms’ higher probable upside, analysts clearly believe Bitfarms is more favorable than Magic Empire Global.

Profitability

This table compares Magic Empire Global and Bitfarms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magic Empire Global	N/A	N/A	N/A
Bitfarms	-64.06%	-19.24%	-16.04%

Summary

Bitfarms beats Magic Empire Global on 6 of the 11 factors compared between the two stocks.

About Magic Empire Global

Magic Empire Global Limited engages in the provision of corporate finance advisory services and underwriting services in Hong Kong. The company provides initial public offering sponsorship, financial and independent financial advisory, post-listing compliance advisory, and underwriting services by acting as global coordinator, bookrunner, lead manager, or underwriter. It also offers corporate services, which include accounting and financial reporting advisory, company secretarial services, internal control enhancement, investor relations advisory, and other consulting services. The company was incorporated in 2016 and is headquartered in Central, Hong Kong.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.