Analyzing Gen Digital (NASDAQ:GEN) & TeraWulf (NASDAQ:WULF)

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

Institutional and Insider Ownership

62.5% of TeraWulf shares are held by institutional investors. Comparatively, 81.4% of Gen Digital shares are held by institutional investors. 15.9% of TeraWulf shares are held by insiders. Comparatively, 9.7% of Gen Digital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares TeraWulf and Gen Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$168.46 million	51.33	-$661.42 million	($4.37)	-3.97
Gen Digital	$5.00 billion	3.27	$973.00 million	$1.72	15.87

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

Volatility and Risk

TeraWulf has a beta of 3.7, suggesting that its stock price is 270% more volatile than the S&P 500. Comparatively, Gen Digital has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Profitability

This table compares TeraWulf and Gen Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeraWulf	-1,179.94%	-458.62%	-8.54%
Gen Digital	20.73%	55.93%	8.91%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TeraWulf and Gen Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeraWulf	1	3	18	3	2.92
Gen Digital	0	6	1	1	2.38

TeraWulf currently has a consensus target price of $33.04, indicating a potential upside of 90.64%. Gen Digital has a consensus target price of $31.60, indicating a potential upside of 15.79%. Given TeraWulf’s stronger consensus rating and higher possible upside, equities analysts clearly believe TeraWulf is more favorable than Gen Digital.

Summary

Gen Digital beats TeraWulf on 8 of the 15 factors compared between the two stocks.

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.

About Gen Digital

Gen Digital Inc. engages in the provision of cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers security and performance products under Norton, Avast, Avira, AVG, and CCleaner brands that provide real-time protection and maintenance for PCs, Macs, and mobile devices against malware, viruses, adware, and other online threats. It also provides identity protection solutions, including LifeLock Identity Theft Protection, Avast and AVG Secure Identity, Norton Identity Theft Protection, and Dark Web Monitoring for monitoring of credit reports, financial accounts, the dark web, and social media accounts to help safeguard customers’ personal information. In addition, the company offers Virtual Private Network (VPN) solutions under Norton, Avast and AVG brands to enhance security and online privacy that allows customers to securely transmit and access private information, such as passwords, bank details, and credit card numbers, when using public Wi-Fi on PCs, Macs, and mobile iOS and Android devices; AntiTrack and Secure Browser products which helps to keep personal information and browsing activity anonymous while browsing online; and Privacy Monitor Assistant and BreachGuard products for removing customers’ data from public data broker sites; and ReputationDefender, a white glove service that helps customers manage all aspects of their personal branding online, including search results, social media sites, and overall web presence. It markets and sells its products and related services through retailers, telecom service providers, hardware original equipment manufacturers, and employee benefit providers, as well as e-commerce platform. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is headquartered in Tempe, Arizona.