Zapata Quantum (OTCMKTS:ZPTA – Get Free Report) and Bitfarms (NASDAQ:BITF – Get Free Report) are both small-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Volatility & Risk
Zapata Quantum has a beta of 20.94, meaning that its share price is 1,994% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, meaning that its share price is 277% more volatile than the S&P 500.
Insider and Institutional Ownership
51.2% of Zapata Quantum shares are owned by institutional investors. Comparatively, 20.6% of Bitfarms shares are owned by institutional investors. 39.3% of Zapata Quantum shares are owned by company insiders. Comparatively, 9.5% of Bitfarms shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Zapata Quantum | N/A | -7.23% | -3.10% |
| Bitfarms | -48.26% | -4.48% | -3.71% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Zapata Quantum and Bitfarms, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zapata Quantum | 0 | 1 | 0 | 1 | 3.00 |
| Bitfarms | 1 | 1 | 4 | 0 | 2.50 |
Bitfarms has a consensus price target of $4.67, suggesting a potential upside of 48.41%. Given Bitfarms’ higher probable upside, analysts plainly believe Bitfarms is more favorable than Zapata Quantum.
Valuation & Earnings
This table compares Zapata Quantum and Bitfarms”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zapata Quantum | $3.88 million | 27.04 | $9.34 million | ($0.02) | -28.00 |
| Bitfarms | $229.28 million | 8.28 | -$138.65 million | ($0.23) | -13.70 |
Zapata Quantum has higher earnings, but lower revenue than Bitfarms. Zapata Quantum is trading at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.
Summary
Zapata Quantum beats Bitfarms on 10 of the 15 factors compared between the two stocks.
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.
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.
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