Head to Head Survey: OneConnect Financial Technology (NYSE:OCFT) vs. Bitfarms (NASDAQ:BITF)

   2022-04-03 10:04


OneConnect Financial Technology (NYSE:OCFT – Get Rating) and Bitfarms (NASDAQ:BITF – Get Rating) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.



Analyst Recommendations


This is a breakdown of current recommendations for OneConnect Financial Technology and Bitfarms, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OneConnect Financial Technology 1 2 2 0 2.20
Bitfarms 0 0 1 0 3.00

OneConnect Financial Technology presently has a consensus target price of $9.50, indicating a potential upside of 588.41%. Bitfarms has a consensus target price of $8.00, indicating a potential upside of 110.53%. Given OneConnect Financial Technology’s higher possible upside, equities analysts clearly believe OneConnect Financial Technology is more favorable than Bitfarms.

Insider and Institutional Ownership

16.5% of OneConnect Financial Technology shares are owned by institutional investors. Comparatively, 14.7% of Bitfarms shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares OneConnect Financial Technology and Bitfarms’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OneConnect Financial Technology $640.51 million 0.84 -$198.66 million ($0.53) -2.60
Bitfarms $169.49 million 4.51 -$16.29 million $0.10 38.00

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

Profitability

This table compares OneConnect Financial Technology and Bitfarms’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OneConnect Financial Technology -31.00% -29.06% -13.81%
Bitfarms 13.06% 11.80% 10.27%

Summary

Bitfarms beats OneConnect Financial Technology on 8 of the 12 factors compared between the two stocks.

OneConnect Financial Technology Company Profile (Get Rating)

OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People’s Republic of China. It offers digital retail banking, small and medium enterprises (SME) financing and services, retail and SME banking risk-management, auto insurance operations and services, asset management, asset-liability management, artificial intelligence customer service, core systems, and insurance sales management solutions. The company also operates Regtech, an end-to-end regulatory solution to help regulatory authorities automate and digitalize their operations; Gamma O, an open API platform-as-a-service for reusable financial technology components and integrations; and Blockchain network-as-a-service. In addition, it provides technology infrastructure, such as data management and cloud services. The company serves customers in the financial services industry, including banking, insurance, and asset management. OneConnect Financial Technology Co., Ltd. was founded in 2015 and is headquartered in Shenzhen, the People’s Republic of China. OneConnect Financial Technology Co., Ltd. has a strategic agreement with the Hainan Local Financial Supervision Administration to develop smart financial and smart supervision services in the island province of Hainan, as well as the financial sector in Hainan free trade port. OneConnect Financial Technology Co., Ltd. operates as a subsidiary of Ping An Insurance (Group) Company of China, Ltd.

Bitfarms Company Profile (Get Rating)

Bitfarms Ltd., a blockchain infrastructure company, mines for cryptocurrency coins and tokens in North America. The company owns and operates server farms comprising computers that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. It also provides electrician services to commercial and residential customers in Quebec, Canada. It also provides hosting of third-party mining hardware. The company was founded in 2017 and is headquartered in Toronto, Canada.



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