Critical Review: Bitfarms (NASDAQ:BITF) vs. Tokens.com (OTC:SMURF)

Tokens.com (OTC:SMURF) and Bitfarms (NASDAQ:BITF) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Institutional and Insider Ownership

20.6% of Bitfarms shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Tokens.com and Bitfarms”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokens.com	$740,000.00	34.93	-$10.14 million	($0.01)	-21.37
Bitfarms	$182.96 million	2.12	-$104.04 million	($0.14)	-5.77

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

Analyst Ratings

This is a breakdown of current recommendations for Tokens.com and Bitfarms, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokens.com	0	0	0	0	0.00
Bitfarms	0	1	6	0	2.86

Bitfarms has a consensus price target of $3.97, suggesting a potential upside of 390.80%. Given Bitfarms’ stronger consensus rating and higher possible upside, analysts plainly believe Bitfarms is more favorable than Tokens.com.

Profitability

This table compares Tokens.com and Bitfarms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokens.com	-454.36%	-40.05%	-36.93%
Bitfarms	-69.08%	-22.17%	-18.93%

Summary

Bitfarms beats Tokens.com on 10 of the 13 factors compared between the two stocks.

About Tokens.com

Tokens.com Corp. provides blockchain verification services through proof-of-stake technology. The company's technology secures blockchain networks through proof-of-stake technology to support the growth of decentralized finance applications. It also provides web3 technology services for metaverses, non-fungible tokens, and ecomm3, as well as consulting services; and builds web3 games. Tokens.com Corp. is based in Toronto, Canada.

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.