Head-To-Head Review: TeraWulf (NASDAQ:WULF) and Zapata Quantum (OTCMKTS:ZPTA)

Zapata Quantum (OTCMKTS:ZPTA) and TeraWulf (NASDAQ:WULF) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Earnings and Valuation

This table compares Zapata Quantum and TeraWulf”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zapata Quantum	$3.88 million	24.72	$9.34 million	($0.02)	-25.60
TeraWulf	$168.46 million	45.88	-$661.42 million	($4.37)	-3.54

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

Institutional & Insider Ownership

51.2% of Zapata Quantum shares are owned by institutional investors. Comparatively, 62.5% of TeraWulf shares are owned by institutional investors. 39.3% of Zapata Quantum shares are owned by company insiders. Comparatively, 15.9% of TeraWulf shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Zapata Quantum has a beta of 20.94, meaning that its share price is 1,994% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.8, meaning that its share price is 280% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Zapata Quantum and TeraWulf, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zapata Quantum	0	0	0	1	4.00
TeraWulf	1	3	18	3	2.92

TeraWulf has a consensus price target of $33.33, suggesting a potential upside of 115.14%. Given TeraWulf’s higher probable upside, analysts clearly believe TeraWulf is more favorable than Zapata Quantum.

Profitability

This table compares Zapata Quantum and TeraWulf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zapata Quantum	N/A	-7.23%	-3.10%
TeraWulf	-1,179.94%	-458.62%	-8.54%

Summary

Zapata Quantum beats TeraWulf on 8 of the 15 factors compared between the two stocks.

About Zapata Quantum

Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.