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Critical Analysis: Cipher Mining (NASDAQ:CIFR) & SciPlay (NASDAQ:SCPL)

Defense World ·  Jan 31, 2023 01:32

Cipher Mining (NASDAQ:CIFR – Get Rating) and SciPlay (NASDAQ:SCPL – Get Rating) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

This table compares Cipher Mining and SciPlay's net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Cipher Mining N/A -40.32% -38.41%
SciPlay 2.66% 6.51% 5.00%

Institutional & Insider Ownership

10.8% of Cipher Mining shares are owned by institutional investors. Comparatively, 17.6% of SciPlay shares are owned by institutional investors. 1.8% of Cipher Mining shares are owned by company insiders. Comparatively, 2.7% of SciPlay shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Cipher Mining and SciPlay, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cipher Mining 0 1 0 0 2.00
SciPlay 1 3 5 0 2.44

Cipher Mining currently has a consensus target price of $1.50, suggesting a potential upside of 22.95%. SciPlay has a consensus target price of $16.39, suggesting a potential downside of 2.91%. Given Cipher Mining's higher possible upside, research analysts plainly believe Cipher Mining is more favorable than SciPlay.

Earnings & Valuation

This table compares Cipher Mining and SciPlay's revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cipher Mining N/A N/A -$72.16 million N/A N/A
SciPlay $606.10 million 3.52 $19.30 million $0.70 24.11

SciPlay has higher revenue and earnings than Cipher Mining.

Risk and Volatility

Cipher Mining has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, SciPlay has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Summary

SciPlay beats Cipher Mining on 9 of the 11 factors compared between the two stocks.

About Cipher Mining

(Get Rating)

Cipher Mining Inc., a technology company, operates in the bitcoin mining ecosystem in the United States. It engages in developing and growing a cryptocurrency mining business that specializes in bitcoin. The company was incorporated in 2021 and is based in New York, New York.

About SciPlay

(Get Rating)

SciPlay Corporation develops, markets, and operates a portfolio of social games for mobile and web platforms in North America and internationally. It offers social casino games, such as Jackpot Party Casino, Gold Fish Casino, Quick Hit Slots, 88 Fortunes Slots, MONOPOLY Slots, and Hot Shot Casino, as well as casual games comprising Bingo Showdown, Solitaire Pets Adventure, and Backgammon Live. The company's social casino games include slots-style game play, as well as table games-style game play; and casual games blend slots-style or bingo game play with adventure game features. It also offers titles and content from third-party licensed brands. The company was formerly known as SG Social Games Corporation and changed its name to SciPlay Corporation in March 2019. SciPlay Corporation was founded in 1997 and is based in Las Vegas, Nevada. SciPlay Corporation is a subsidiary of Scientific Games Corporation.

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