Applied Digital (OTCMKTS:APLD) vs. Computershare (OTCMKTS:CMSQF) Head-To-Head Comparison

Applied Digital (OTCMKTS:APLD) and Computershare (OTCMKTS:CMSQF) are both financial services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional and Insider Ownership

65.7% of Applied Digital shares are owned by institutional investors. Comparatively, 21.9% of Computershare shares are owned by institutional investors. 23.7% of Applied Digital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Applied Digital and Computershare, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Digital	0	0	2	0	3.00
Computershare	0	0	0	0	N/A

Applied Digital currently has a consensus target price of $14.13, indicating a potential upside of 233.14%. Given Applied Digital’s higher probable upside, research analysts clearly believe Applied Digital is more favorable than Computershare.

Valuation & Earnings

This table compares Applied Digital and Computershare’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Digital	$143.91 million	3.62	-$44.65 million	($0.79)	-5.37
Computershare	N/A	N/A	N/A	$0.48	37.28

Computershare has lower revenue, but higher earnings than Applied Digital. Applied Digital is trading at a lower price-to-earnings ratio than Computershare, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Applied Digital and Computershare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Digital	-80.60%	-61.59%	-22.75%
Computershare	N/A	N/A	N/A

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

About Computershare

Computershare Limited provides issuer, employee share plans and voucher, business, communication and utilities, technology, and mortgage and property rental services. The company offers issuer services that include register maintenance, corporate actions, stakeholder relationship management, corporate governance, and related services; mortgage services and property rental, including tenancy bond protection services; and employee share plans and voucher services comprising administration and related services for employee share and option plans, and childcare voucher administration services. It also provides business services, including the provision of bankruptcy, class action, and corporate trust administration services; communication services and utilities operations consisting of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery; and technology services, such as software solutions in share registry and financial services, as well as agency services in connection with the administration of debt securities. It operates in Australia, New Zealand, Asia, Canada, Continental Europe, the United Kingdom, the Channel Islands, Ireland, Africa, and the United States. The company was incorporated in 1978 and is based in Abbotsford, Australia.