Reviewing Daiwa Securities Group (OTCMKTS:DSEEY) and Hut 8 (NASDAQ:HUT)

Hut 8 (NASDAQ:HUT) and Daiwa Securities Group (OTCMKTS:DSEEY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Hut 8 has a beta of 4.41, suggesting that its stock price is 341% more volatile than the S&P 500. Comparatively, Daiwa Securities Group has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Institutional & Insider Ownership

31.8% of Hut 8 shares are held by institutional investors. 11.2% of Hut 8 shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Hut 8 and Daiwa Securities Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hut 8	115.39%	8.06%	5.18%
Daiwa Securities Group	11.23%	7.00%	0.37%

Analyst Ratings

This is a summary of recent ratings and target prices for Hut 8 and Daiwa Securities Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	0	1	16	2	3.05
Daiwa Securities Group	0	0	0	0	0.00

Hut 8 currently has a consensus target price of $56.76, indicating a potential downside of 7.06%. Given Hut 8’s stronger consensus rating and higher possible upside, research analysts clearly believe Hut 8 is more favorable than Daiwa Securities Group.

Earnings and Valuation

This table compares Hut 8 and Daiwa Securities Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$162.38 million	40.64	$331.88 million	($0.39)	-156.61
Daiwa Securities Group	$9.01 billion	1.45	$1.02 billion	$0.73	12.74

Daiwa Securities Group has higher revenue and earnings than Hut 8. Hut 8 is trading at a lower price-to-earnings ratio than Daiwa Securities Group, indicating that it is currently the more affordable of the two stocks.

Summary

Hut 8 beats Daiwa Securities Group on 11 of the 15 factors compared between the two stocks.

About Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.

About Daiwa Securities Group

Daiwa Securities Group Inc., together with its subsidiaries, primarily operates as a securities broker-dealer in Japan and internationally. The company operates through four segments: Retail, Wholesale, Asset Management, and Investment. The Retail segment offers products and services related to asset management, including equities, bonds, investment trusts, wrap account services, insurance, banking services, inheritance-related services, etc. for individual investors and unlisted companies. The Wholesale segment offers sales and trading services of equities and bonds, as well as of foreign exchange and derivative products primarily for institutional investors and corporations; and investment banking services, such as underwriting of securities, M&A advisory, etc. The Asset Management segment structures and manages investment trusts primarily for individual investors and financial institutions; provides investment advisory services; and manages assets. The Investment segment invests in monetary claims, loans, private equities, and real estate properties, as well as energy, infrastructure, and resource sectors. The company also offers research and consulting, and information services, as well as engages in the office work activities. In addition, it is involved in the securities-related, investment advisory and agency, and investment management businesses, as well as lending and borrowing of real estate properties. The company was formerly known as Daiwa Securities Co. Ltd. and changed its name to Daiwa Securities Group Inc. in 1999. Daiwa Securities Group Inc. was founded in 1902 and is headquartered in Tokyo, Japan.