Analyzing National CineMedia (NASDAQ:NCMI) and Abits Group (NASDAQ:ABTS)

National CineMedia (NASDAQ:NCMI) and Abits Group (NASDAQ:ABTS) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Insider & Institutional Ownership

69.5% of National CineMedia shares are owned by institutional investors. Comparatively, 0.2% of Abits Group shares are owned by institutional investors. 1.4% of National CineMedia shares are owned by company insiders. Comparatively, 6.7% of Abits Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares National CineMedia and Abits Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National CineMedia	-6.39%	-2.67%	-1.99%
Abits Group	N/A	N/A	N/A

Volatility and Risk

National CineMedia has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Abits Group has a beta of 2.82, meaning that its share price is 182% more volatile than the S&P 500.

Earnings & Valuation

This table compares National CineMedia and Abits Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National CineMedia	$240.80 million	1.44	-$22.30 million	($0.15)	-24.67
Abits Group	$6.71 million	1.85	-$910,000.00	N/A	N/A

Abits Group has lower revenue, but higher earnings than National CineMedia.

Analyst Ratings

This is a breakdown of recent ratings for National CineMedia and Abits Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National CineMedia	1	3	3	0	2.29
Abits Group	1	0	0	0	1.00

National CineMedia presently has a consensus price target of $5.80, suggesting a potential upside of 56.76%. Given National CineMedia’s stronger consensus rating and higher possible upside, analysts clearly believe National CineMedia is more favorable than Abits Group.

Summary

Abits Group beats National CineMedia on 7 of the 12 factors compared between the two stocks.

About National CineMedia

National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.

About Abits Group

Abits Group Inc. operates in the bitcoin mining business in the United States. The company was formerly known as Moxian (BVI) Inc and changed its name to Abits Group Inc. in November 2023. Abits Group Inc. was incorporated in 2021 and is based in Causeway Bay, Hong Kong.