Elastic (NYSE:ESTC) and BTCS (NASDAQ:BTCS) Critical Analysis

BTCS (NASDAQ:BTCS) and Elastic (NYSE:ESTC) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Institutional & Insider Ownership

3.5% of BTCS shares are held by institutional investors. Comparatively, 97.0% of Elastic shares are held by institutional investors. 16.9% of BTCS shares are held by company insiders. Comparatively, 12.7% of Elastic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares BTCS and Elastic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BTCS	-746.29%	-14.40%	-9.21%
Elastic	20.84%	-0.35%	-0.14%

Volatility and Risk

BTCS has a beta of 3.38, indicating that its stock price is 238% more volatile than the S&P 500. Comparatively, Elastic has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for BTCS and Elastic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BTCS	0	2	1	0	2.33
Elastic	0	13	15	1	2.59

BTCS presently has a consensus price target of $5.00, suggesting a potential upside of 300.00%. Elastic has a consensus price target of $96.52, suggesting a potential upside of 13.31%. Given BTCS’s higher probable upside, analysts plainly believe BTCS is more favorable than Elastic.

Valuation & Earnings

This table compares BTCS and Elastic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BTCS	$16.49 million	3.98	-$33.35 million	($3.31)	-0.38
Elastic	$1.74 billion	5.14	$367.77 million	$3.57	23.86

Elastic has higher revenue and earnings than BTCS. BTCS is trading at a lower price-to-earnings ratio than Elastic, indicating that it is currently the more affordable of the two stocks.

Summary

Elastic beats BTCS on 12 of the 15 factors compared between the two stocks.

About BTCS

BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.

About Elastic

Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data. The company's Elastic Stack product portfolio comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Elastic Agent that offers integrated host protection and central management services; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems from a multitude of sources simultaneously. It also provides software solutions on the Elastic Stack that address cases, including search applications, workplace search, logs, metrics, application performance monitoring, synthetic monitoring, security information and event management (SIEM), endpoint security, extended detection and response, and cloud security. The company was incorporated in 2012 and is based in Amsterdam, the Netherlands.