Comparative Analysis of Coinbase Global (NASDAQ:COIN) and Bitcoin Depot (NASDAQ:BTM)

Bitcoin Depot (NASDAQ:BTM) and Coinbase Global (NASDAQ:COIN) are key players in the financial services sector, but which one stands out as a better investment opportunity? To determine this, we will examine several aspects of their businesses including analyst ratings, dividends, profitability, valuation, earnings, institutional ownership, and overall risk.

Insider and Institutional Ownership

Bitcoin Depot has 9.2% of its shares held by institutional investors, while Coinbase Global has a significantly higher figure at 68.8%. Additionally, insider ownership is notable, with 70.2% of Bitcoin Depot shares owned by insiders compared to 23.4% for Coinbase Global. A strong presence of institutional ownership often reflects a belief among large investors that a stock will perform well over time.

Analyst Ratings

Analyzing current ratings and recommendations from MarketBeat.com, we find that Bitcoin Depot holds a more favorable consensus than Coinbase Global.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitcoin Depot	0	1	2	1	3.00
Coinbase Global	1	9	10	0	2.45

The projected price target for Bitcoin Depot is $3.67, suggesting a potential upside of 100.36%, compared with a price target of $265.33 for Coinbase Global, which presents a potential downside of 12.26%. This indicates that analysts currently view Bitcoin Depot more favorably.

Profitability

Examining profitability metrics, Bitcoin Depot has negative net margins, return on equity, and return on assets, indicating challenges in profitability. Conversely, Coinbase Global showcases a much stronger performance with positive margins and returns.

	Net Margins	Return on Equity	Return on Assets
Bitcoin Depot	-2.28%	-488.33%	-15.15%
Coinbase Global	29.76%	14.81%	0.41%

Valuation & Earnings

In terms of revenue and earnings, Coinbase Global significantly outperforms Bitcoin Depot.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$688.97 million	0.16	-$26.10 million	($0.93)	-1.97
Coinbase Global	$5.25 billion	14.43	$94.87 million	$5.86	51.60

Although Bitcoin Depot has a lower price-to-earnings ratio, indicating it may be more affordable, Coinbase Global’s revenue and income levels are considerably higher.

Volatility & Risk

Bitcoin Depot demonstrates low volatility with a beta of -0.33, making it significantly less volatile compared to the S&P 500. In contrast, Coinbase Global shows a high beta of 3.34, indicating much greater price volatility.

Conclusion

When considering multiple factors, Coinbase Global outperforms Bitcoin Depot in 11 of the 15 categories analyzed, presenting a clearer picture of its stability and profitability.

About Bitcoin Depot

Bitcoin Depot Inc. operates a network of cryptocurrency kiosks across North America, allowing users to buy and sell various cryptocurrencies like Bitcoin, Litecoin, and Ethereum via their BTM kiosks. The company also provides cryptocurrency sales to consumers through retail locations and its website. Based in Atlanta, Georgia, Bitcoin Depot is a subsidiary of BT Assets, Inc.

About Coinbase Global

Coinbase Global, Inc. serves as a financial infrastructure and technology platform for the global crypto economy. It offers essential account services for consumers and creates a marketplace for institutions to transact in cryptocurrencies. Founded in 2012, the company is headquartered in Wilmington, Delaware.

Coinbase, Bitcoin, Investment, Stocks, Cryptocurrency