Critical Contrast: IREN (IREN) & The Competition

IREN (NASDAQ:IREN) is one of 959 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare IREN to related companies based on the strength of its analyst recommendations, institutional ownership, risk, dividends, earnings, valuation and profitability.

Volatility & Risk

IREN has a beta of 4.29, meaning that its stock price is 329% more volatile than the S&P 500. Comparatively, IREN’s rivals have a beta of 1.18, meaning that their average stock price is 18% more volatile than the S&P 500.

Institutional and Insider Ownership

41.1% of IREN shares are owned by institutional investors. Comparatively, 42.4% of shares of all “Software” companies are owned by institutional investors. 5.0% of IREN shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares IREN and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IREN	20.90%	-13.13%	-6.03%
IREN Competitors	-618.90%	44.10%	-8.08%

Earnings & Valuation

This table compares IREN and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
IREN	$501.02 million	$86.94 million	93.25
IREN Competitors	$1.79 billion	$386.48 million	71.96

IREN’s rivals have higher revenue and earnings than IREN. IREN is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings for IREN and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IREN	2	4	14	1	2.67
IREN Competitors	5337	20827	43474	1423	2.58

IREN currently has a consensus price target of $83.00, suggesting a potential upside of 85.43%. As a group, “Software” companies have a potential upside of 269.22%. Given IREN’s rivals higher possible upside, analysts plainly believe IREN has less favorable growth aspects than its rivals.

Summary

IREN beats its rivals on 7 of the 13 factors compared.

About IREN

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.