Argo Blockchain (NASDAQ:ARBK – Get Free Report) and Exzeo Group (NYSE:XZO – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Profitability
This table compares Argo Blockchain and Exzeo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Argo Blockchain | N/A | N/A | N/A |
| Exzeo Group | 39.14% | 38.77% | 26.80% |
Institutional and Insider Ownership
2.4% of Argo Blockchain shares are held by institutional investors. 4.0% of Exzeo Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Argo Blockchain | $15.52 million | 2.44 | $5.08 million | ($117.39) | -0.02 |
| Exzeo Group | $216.98 million | 6.79 | $82.75 million | $0.98 | 16.68 |
Exzeo Group has higher revenue and earnings than Argo Blockchain. Argo Blockchain is trading at a lower price-to-earnings ratio than Exzeo Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Argo Blockchain and Exzeo Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Argo Blockchain | 1 | 1 | 0 | 0 | 1.50 |
| Exzeo Group | 1 | 1 | 3 | 0 | 2.40 |
Exzeo Group has a consensus price target of $26.00, suggesting a potential upside of 59.07%. Given Exzeo Group’s stronger consensus rating and higher probable upside, analysts clearly believe Exzeo Group is more favorable than Argo Blockchain.
Summary
Exzeo Group beats Argo Blockchain on 12 of the 13 factors compared between the two stocks.
About Argo Blockchain
Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.
About Exzeo Group
Exzeo provides turnkey insurance technology and operations solutions to insurance carriers and their agents based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty, or P&C, insurance ecosystem. Exzeo’s Insurance-as-a-Service (IaaS) platform, which we refer to as the “Exzeo Platform,” currently includes nine highly configurable software and data analytics applications that are purpose-built to serve insurance companies and other customers in the insurance value chain. Through the Exzeo Platform, Exzeo provides technology-based solutions and services for all operational and administrative activities and functions needed by P&C insurance carriers and their agents, including quoting and underwriting, policy management, claims processing management, data reporting, and financial reporting. As a result, the Exzeo Platform streamlines and automates the interaction between insurance carriers and their policyholders. Exzeo was established in 2012 as the technology and innovation division of HCI Group, Inc., or HCI, a leading underwriter of homeowners insurance in Florida and 12 other states. Exzeo’s initial customers are insurance carriers or their managing general agent that are owned or managed by HCI and its subsidiaries, and Exzeo has derived substantially all of its revenues to date from such customers. In addition to working with existing customers to expand their business, Exzeo intends to develop new customer partnerships with additional carriers and their agents by introducing them to the advantage of our technology. Exzeo was founded with a clear mission: to develop a platform that enhances underwriting margins, reduces operating expenses, enables rapid expansion across both geographic markets and product lines, and delivers a streamlined, user-friendly experience for both carriers and policyholders. Exzeo’s data-centric technology and mission inspired its name, which is derived from the combination of three words that describe the “Big Data” it collects and utilizes in its products and services: Exabyte (a million trillion – 1018– bytes), Zettabyte (1021 bytes) and Yottabyte (1024 bytes). Exzeo generates revenue from underwriting and management services, claim services, and other technology services that are provided through and powered by the Exzeo Platform. Exzeo provides its solutions and technologies to customers under contracts with a variable fee structure that is typically based on a percentage of premium managed through the Exzeo Platform. Exzeo believes that this fee structure is beneficial to customers because it is designed to allow customers to scale while optimizing for operational efficiencies and without significant up-front technology expenditures. We currently hold insurance agency or managing general agent licenses, as appropriate, in 29 states. Through the Exzeo Platform, we currently provide services in the following 13 states in which our customers have operations: Florida, Connecticut, Georgia, Massachusetts, Montana, North Carolina, New Jersey, New Mexico, Nevada, Rhode Island, South Carolina, South Dakota, and Utah. We intend to expand our operations (and obtain additional licenses as needed) in the 21 remaining states based upon growth plans of our existing customers or the existing geographies and growth plans of new customers with which we engage. Exzeo Group, Inc. is the registrant and the issuer of the common stock being sold in this offering. Our corporate headquarters is located in Tampa, FL.
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