MGT Capital Investments (OTCMKTS:MGTI) versus TeraWulf (NASDAQ:WULF) Critical Survey

TeraWulf (NASDAQ:WULF) and MGT Capital Investments (OTCMKTS:MGTI) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Risk and Volatility

TeraWulf has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500. Comparatively, MGT Capital Investments has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500.

Earnings & Valuation

This table compares TeraWulf and MGT Capital Investments”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$140.05 million	7.44	-$73.42 million	($0.20)	-13.60
MGT Capital Investments	$400,000.00	0.86	-$6.13 million	N/A	N/A

MGT Capital Investments has lower revenue, but higher earnings than TeraWulf.

Analyst Recommendations

This is a summary of current ratings for TeraWulf and MGT Capital Investments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeraWulf	0	1	6	2	3.11
MGT Capital Investments	0	0	0	0	0.00

TeraWulf currently has a consensus target price of $9.50, indicating a potential upside of 249.26%. Given TeraWulf’s stronger consensus rating and higher probable upside, equities research analysts clearly believe TeraWulf is more favorable than MGT Capital Investments.

Insider and Institutional Ownership

62.5% of TeraWulf shares are held by institutional investors. 24.9% of TeraWulf shares are held by insiders. Comparatively, 3.8% of MGT Capital Investments shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares TeraWulf and MGT Capital Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeraWulf	-41.88%	-15.91%	-11.67%
MGT Capital Investments	N/A	N/A	N/A

Summary

TeraWulf beats MGT Capital Investments on 9 of the 13 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 MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.