Financial Analysis: IREN (NASDAQ:IREN) and A2A (OTCMKTS:AEMMY)

A2A (OTCMKTS:AEMMY) and IREN (NASDAQ:IREN) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

41.1% of IREN shares are owned by institutional investors. 5.0% of IREN shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares A2A and IREN”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A2A	N/A	N/A	N/A	N/A	N/A
IREN	$688.55 million	24.64	$86.94 million	$1.94	32.15

IREN has higher revenue and earnings than A2A.

Profitability

This table compares A2A and IREN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A2A	N/A	N/A	N/A
IREN	86.96%	-4.42%	-2.95%

Analyst Ratings

This is a breakdown of current ratings and target prices for A2A and IREN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A2A	0	1	0	0	2.00
IREN	3	3	11	0	2.47

IREN has a consensus price target of $65.25, suggesting a potential upside of 4.60%. Given IREN’s stronger consensus rating and higher possible upside, analysts plainly believe IREN is more favorable than A2A.

Summary

IREN beats A2A on 7 of the 9 factors compared between the two stocks.

About A2A

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, biomass, and wind plants; and sells and distributes gas. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting systems and street lights, and water purification and sewer activities, as well as offers garbage collection, street sweeping, video surveillance, energy efficiency, and electric mobility services. A2A S.p.A. is headquartered in Milan, Italy.

About IREN

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.