Analyzing Applied Digital (OTCMKTS:APLD) and Swissquote Group (OTCMKTS:SWQGF)

Applied Digital (OTCMKTS:APLD) and Swissquote Group (OTCMKTS:SWQGF) are both financial services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Insider and Institutional Ownership

65.7% of Applied Digital shares are owned by institutional investors. 23.7% of Applied Digital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Applied Digital and Swissquote Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Digital	0	0	2	0	3.00
Swissquote Group	0	0	0	0	N/A

Applied Digital currently has a consensus target price of $14.13, suggesting a potential upside of 233.14%. Given Applied Digital’s higher possible upside, equities research analysts plainly believe Applied Digital is more favorable than Swissquote Group.

Profitability

This table compares Applied Digital and Swissquote Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Digital	-80.60%	-61.59%	-22.75%
Swissquote Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Applied Digital and Swissquote Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Digital	$143.91 million	3.62	-$44.65 million	($0.79)	-5.37
Swissquote Group	N/A	N/A	N/A	N/A	N/A

Swissquote Group has lower revenue, but higher earnings than Applied Digital.

Summary

Applied Digital beats Swissquote Group on 5 of the 8 factors compared between the two stocks.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

About Swissquote Group

Swissquote Group Holding Ltd provides a suite of online financial services to retail investors, affluent investors, and professional and institutional customers worldwide. The company operates in two segments, Securities Trading and Leveraged Forex. It operates an online bank that accepts multi-currency deposits/withdrawals, including crypto assets. The company provides securities trading services, such as custody services by means of tools to trade in real time a large palette of asset classes and access a set of investment, decision making, risk monitoring, and margin lending services to private investors, independent asset managers and professional investors, investment funds and other institutional clients, and third-party financial institutions. It also offers access to over-the-counter trading of foreign exchange and contracts-for-differences to private investors, money managers, third-party financial institutions, and investment funds and other institutional clients. In addition, the company provides multicurrency account, securities lending, gold account, ESG investing tools, and Lombard and margin loans; and white-label, e-mortgage, multicurrency debit card, and crypto services. The company was incorporated in 1999 and is headquartered in Gland, Switzerland.