Analyzing Iris Energy (NASDAQ:IREN) and BitFuFu (NASDAQ:FUFU)
by Renee Jackson · The Cerbat GemBitFuFu (NASDAQ:FUFU – Get Free Report) and Iris Energy (NASDAQ:IREN – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
Risk & Volatility
BitFuFu has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Iris Energy has a beta of 3.41, suggesting that its stock price is 241% more volatile than the S&P 500.
Institutional & Insider Ownership
37.3% of BitFuFu shares are owned by institutional investors. Comparatively, 41.1% of Iris Energy shares are owned by institutional investors. 35.0% of BitFuFu shares are owned by insiders. Comparatively, 21.5% of Iris Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares BitFuFu and Iris Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BitFuFu | $423.70 million | 1.59 | $10.49 million | N/A | N/A |
| Iris Energy | $188.76 million | 6.05 | -$28.95 million | N/A | N/A |
BitFuFu has higher revenue and earnings than Iris Energy.
Analyst Ratings
This is a summary of current ratings for BitFuFu and Iris Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BitFuFu | 0 | 0 | 0 | 0 | N/A |
| Iris Energy | 0 | 1 | 8 | 0 | 2.89 |
Iris Energy has a consensus price target of $15.63, indicating a potential upside of 100.58%. Given Iris Energy’s higher probable upside, analysts plainly believe Iris Energy is more favorable than BitFuFu.
Profitability
This table compares BitFuFu and Iris Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BitFuFu | N/A | N/A | N/A |
| Iris Energy | N/A | N/A | N/A |
Summary
Iris Energy beats BitFuFu on 5 of the 8 factors compared between the two stocks.
About BitFuFu
BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.
About Iris Energy
Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.