Stem (NYSE:STEM) versus TeraWulf (NASDAQ:WULF) Financial Comparison

TeraWulf (NASDAQ:WULF) and Stem (NYSE:STEM) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares TeraWulf and Stem”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$165.19 million	43.70	-$661.42 million	($4.37)	-3.31
Stem	$148.03 million	0.30	$137.76 million	($8.49)	-0.54

Stem has lower revenue, but higher earnings than TeraWulf. TeraWulf is trading at a lower price-to-earnings ratio than Stem, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for TeraWulf and Stem, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeraWulf	1	2	16	3	2.95
Stem	1	4	0	0	1.80

TeraWulf currently has a consensus price target of $34.21, suggesting a potential upside of 136.46%. Stem has a consensus price target of $7.45, suggesting a potential upside of 61.36%. Given TeraWulf’s stronger consensus rating and higher possible upside, analysts plainly believe TeraWulf is more favorable than Stem.

Profitability

This table compares TeraWulf and Stem’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%
Stem	-49.37%	N/A	-21.85%

Institutional & Insider Ownership

62.5% of TeraWulf shares are held by institutional investors. Comparatively, 61.6% of Stem shares are held by institutional investors. 15.9% of TeraWulf shares are held by insiders. Comparatively, 5.1% of Stem shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

TeraWulf has a beta of 3.7, meaning that its share price is 270% more volatile than the S&P 500. Comparatively, Stem has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Summary

TeraWulf beats Stem on 11 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 Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.