Head-To-Head Review: Brightcove (NASDAQ:BCOV) & BIT Mining (NYSE:BTCM)

Brightcove (NASDAQ:BCOV) and BIT Mining (NYSE:BTCM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Brightcove and BIT Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brightcove	0	1	1	0	2.50
BIT Mining	0	0	0	0	N/A

Brightcove currently has a consensus price target of $4.00, suggesting a potential upside of 91.39%. Given Brightcove’s higher probable upside, analysts plainly believe Brightcove is more favorable than BIT Mining.

Institutional & Insider Ownership

80.1% of Brightcove shares are held by institutional investors. Comparatively, 5.3% of BIT Mining shares are held by institutional investors. 3.7% of Brightcove shares are held by company insiders. Comparatively, 19.7% of BIT Mining shares are held 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

This table compares Brightcove and BIT Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brightcove	-4.74%	-7.87%	-3.39%
BIT Mining	-6.16%	-32.20%	-16.69%

Valuation and Earnings

This table compares Brightcove and BIT Mining’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brightcove	$200.86 million	0.46	-$22.89 million	($0.22)	-9.50
BIT Mining	$43.10 million	0.64	-$28.71 million	($1.31)	-1.90

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

Volatility & Risk

Brightcove has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, BIT Mining has a beta of 2.55, meaning that its share price is 155% more volatile than the S&P 500.

Summary

Brightcove beats BIT Mining on 9 of the 13 factors compared between the two stocks.

About Brightcove

Brightcove Inc. provides cloud-based streaming services the Americas, Europe, the Asia Pacific, Japan, India, and the Middle East. It offers Video Cloud, an online video streaming platform that enables its customers to publish, deliver, and distribute high-quality video to internet-connected devices. The company's solutions and products comprise Brightcove Marketing Studio, a video streaming solution; Brightcove Communications Studio for marketers and corporate communications professionals; Brightcove Media Studio, a solution for over-the-top (OTT) video services, media publishers, and leading broadcasters to monetize their media, live stream at scale, and nurture their audience lifecycle; Brightcove Audience Insights, a customer data platform for video streaming businesses; Zencoder, a cloud-based video encoding service; and Brightcove Beacon, a platform that enables its customers to launch premium OTT video streaming experiences, as well as Brightcove Marketplace. It also provides ad monetization; professional; customer success, support, and documentation; online and onsite training; and video.js and developer solutions. The company serves media companies, broadcasters, digital publishers, sports and entertainment companies, fashion and hospitality brands, faith-based institutions, retail and e-commerce businesses, and technology organizations, as well as government agencies, educational institutions, and non-profit organizations. Brightcove Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.

About BIT Mining

BIT Mining Limited operates as a cryptocurrency mining company in the Mainland China, the United States, and Hong Kong. The company operates in two segments: Data Center and Cryptocurrency Mining. It operates a cryptocurrency mining data center in Ohio with power capacity of 82.5 megawatts; and purchases and deploys bitcoin mining machines. In addition, it engages in online gaming activities; and provision of technology services. The company was formerly known as 500.com Limited and changed its name to BIT Mining Limited in April 2021. BIT Mining Limited was founded in 2001 and is based in Akron, Ohio.