TeraWulf (NASDAQ:WULF – Get Free Report) and Burford Capital (NYSE:BUR – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Volatility and Risk
TeraWulf has a beta of 2.76, indicating that its stock price is 176% more volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Profitability
This table compares TeraWulf and Burford Capital’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% |
| Burford Capital | 34.81% | 8.07% | 4.28% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TeraWulf | 0 | 1 | 7 | 2 | 3.10 |
| Burford Capital | 0 | 0 | 3 | 0 | 3.00 |
TeraWulf presently has a consensus price target of $7.86, indicating a potential upside of 144.77%. Burford Capital has a consensus price target of $19.50, indicating a potential upside of 39.48%. Given TeraWulf’s stronger consensus rating and higher possible upside, analysts clearly believe TeraWulf is more favorable than Burford Capital.
Institutional & Insider Ownership
62.5% of TeraWulf shares are owned by institutional investors. 24.9% of TeraWulf shares are owned by company insiders. Comparatively, 8.9% of Burford Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares TeraWulf and Burford Capital”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TeraWulf | $140.05 million | 8.78 | -$73.42 million | ($0.20) | -16.05 |
| Burford Capital | $341.23 million | 8.99 | $610.52 million | $0.65 | 21.51 |
Burford Capital has higher revenue and earnings than TeraWulf. TeraWulf is trading at a lower price-to-earnings ratio than Burford Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Burford Capital beats TeraWulf on 8 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 Burford Capital
Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.
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