Reviewing BTC Digital (NASDAQ:BTCT) and MDB Capital (NASDAQ:MDBH)

MDB Capital (NASDAQ:MDBH) and BTC Digital (NASDAQ:BTCT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Institutional and Insider Ownership

0.4% of MDB Capital shares are held by institutional investors. Comparatively, 7.3% of BTC Digital shares are held by institutional investors. 55.8% of MDB Capital shares are held by insiders. Comparatively, 0.2% of BTC Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares MDB Capital and BTC Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDB Capital	N/A	17.68%	17.20%
BTC Digital	N/A	N/A	N/A

Earnings and Valuation

This table compares MDB Capital and BTC Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDB Capital	$2.16 million	16.43	$11.69 million	$0.93	3.76
BTC Digital	$11.68 million	1.05	-$1.99 million	($1.20)	-1.36

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

Analyst Recommendations

This is a summary of recent recommendations for MDB Capital and BTC Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDB Capital	1	0	0	0	1.00
BTC Digital	1	0	0	0	1.00

Volatility & Risk

MDB Capital has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, BTC Digital has a beta of 5.69, suggesting that its share price is 469% more volatile than the S&P 500.

Summary

MDB Capital beats BTC Digital on 7 of the 10 factors compared between the two stocks.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.

About BTC Digital

BTC Digital Ltd. a crypto asset technology company engages in bitcoin mining business. It is also involved in mining machines resale and rental business. The company was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023. The company was founded in 2006 and is headquartered in Shenzhen, China.