Critical Review: Mercurity Fintech (NASDAQ:MFH) & TeraWulf (NASDAQ:WULF)

TeraWulf (NASDAQ:WULF) and Mercurity Fintech (NASDAQ:MFH) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Valuation and Earnings

This table compares TeraWulf and Mercurity Fintech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$69.23 million	26.53	-$73.42 million	N/A	N/A
Mercurity Fintech	$716,863.00	609.26	-$9.36 million	N/A	N/A

Mercurity Fintech has lower revenue, but higher earnings than TeraWulf.

Insider & Institutional Ownership

62.5% of TeraWulf shares are held by institutional investors. Comparatively, 30.8% of Mercurity Fintech shares are held by institutional investors. 24.9% of TeraWulf shares are held by company insiders. Comparatively, 62.8% of Mercurity Fintech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TeraWulf and Mercurity Fintech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeraWulf	0	1	7	2	3.10
Mercurity Fintech	0	0	0	0	0.00

TeraWulf currently has a consensus price target of $8.64, indicating a potential upside of 81.57%. Given TeraWulf’s stronger consensus rating and higher probable upside, analysts clearly believe TeraWulf is more favorable than Mercurity Fintech.

Profitability

This table compares TeraWulf and Mercurity Fintech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeraWulf	-41.88%	-15.91%	-11.67%
Mercurity Fintech	N/A	N/A	N/A

Volatility & Risk

TeraWulf has a beta of 2.59, suggesting that its stock price is 159% more volatile than the S&P 500. Comparatively, Mercurity Fintech has a beta of 3.45, suggesting that its stock price is 245% more volatile than the S&P 500.

Summary

Mercurity Fintech beats TeraWulf on 7 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 Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.