Financial Contrast: CNFinance (NYSE:CNF) and Digihost Technology (NASDAQ:DGHI)

Digihost Technology (NASDAQ:DGHI) and CNFinance (NYSE:CNF) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Digihost Technology has a beta of 5.32, indicating that its share price is 432% more volatile than the S&P 500. Comparatively, CNFinance has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500.

Insider & Institutional Ownership

1.9% of Digihost Technology shares are held by institutional investors. 25.8% of CNFinance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Digihost Technology and CNFinance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digihost Technology	-41.33%	-36.00%	-25.95%
CNFinance	N/A	N/A	N/A

Valuation & Earnings

This table compares Digihost Technology and CNFinance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digihost Technology	$42.15 million	2.26	-$21.89 million	($0.54)	-5.35
CNFinance	$246.31 million	0.32	$23.26 million	$0.31	3.74

CNFinance has higher revenue and earnings than Digihost Technology. Digihost Technology is trading at a lower price-to-earnings ratio than CNFinance, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Digihost Technology and CNFinance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digihost Technology	0	0	1	0	3.00
CNFinance	0	0	0	0	0.00

Digihost Technology currently has a consensus price target of $2.50, suggesting a potential downside of 13.49%. Given Digihost Technology’s stronger consensus rating and higher probable upside, equities analysts plainly believe Digihost Technology is more favorable than CNFinance.

Summary

CNFinance beats Digihost Technology on 8 of the 14 factors compared between the two stocks.

About Digihost Technology

Digihost Technology Inc. operates as a blockchain technology company in the United States and Canada. The company operates through Cryptocurrency Mining, Sales of Energy, and Colocation Services segments. It also mines for cryptocurrency; and supplies energy from power plants. Digihost Technology Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates approximately 87 branches and sub-branches in China. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.