TeraWulf (NASDAQ:WULF – Get Free Report) and Zapata Quantum (OTCMKTS:ZPTA – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings and target prices for TeraWulf and Zapata Quantum, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TeraWulf | 1 | 3 | 18 | 3 | 2.92 |
| Zapata Quantum | 0 | 0 | 0 | 1 | 4.00 |
TeraWulf presently has a consensus target price of $33.33, suggesting a potential upside of 115.14%. Given TeraWulf’s higher probable upside, analysts clearly believe TeraWulf is more favorable than Zapata Quantum.
Volatility and Risk
Profitability
This table compares TeraWulf and Zapata Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TeraWulf | -1,179.94% | -458.62% | -8.54% |
| Zapata Quantum | N/A | -7.23% | -3.10% |
Earnings and Valuation
This table compares TeraWulf and Zapata Quantum”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TeraWulf | $168.46 million | 45.88 | -$661.42 million | ($4.37) | -3.54 |
| Zapata Quantum | $3.88 million | 24.72 | $9.34 million | ($0.02) | -25.60 |
Zapata Quantum has lower revenue, but higher earnings than TeraWulf. Zapata Quantum is trading at a lower price-to-earnings ratio than TeraWulf, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
62.5% of TeraWulf shares are owned by institutional investors. Comparatively, 51.2% of Zapata Quantum shares are owned by institutional investors. 15.9% of TeraWulf shares are owned by insiders. Comparatively, 39.3% of Zapata Quantum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Zapata Quantum beats TeraWulf on 8 of the 15 factors compared between the two stocks.
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.
About Zapata Quantum
Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.
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