StepStone Group (NASDAQ:STEP) & BitFuFu (NASDAQ:FUFU) Head to Head Contrast

StepStone Group (NASDAQ:STEP) and BitFuFu (NASDAQ:FUFU) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Volatility & Risk

StepStone Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, BitFuFu has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares StepStone Group and BitFuFu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StepStone Group	-26.88%	37.69%	4.78%
BitFuFu	-16.06%	-3.81%	-1.62%

Earnings & Valuation

This table compares StepStone Group and BitFuFu”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StepStone Group	$1.99 billion	2.41	-$535.81 million	($6.80)	-5.92
BitFuFu	$475.77 million	0.53	-$31.25 million	($0.44)	-3.41

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

Institutional and Insider Ownership

55.5% of StepStone Group shares are held by institutional investors. Comparatively, 37.3% of BitFuFu shares are held by institutional investors. 16.5% of StepStone Group shares are held by company insiders. Comparatively, 35.0% of BitFuFu shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for StepStone Group and BitFuFu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StepStone Group	1	2	7	0	2.60
BitFuFu	2	0	3	0	2.20

StepStone Group currently has a consensus price target of $71.88, suggesting a potential upside of 78.48%. BitFuFu has a consensus price target of $5.33, suggesting a potential upside of 255.56%. Given BitFuFu’s higher probable upside, analysts clearly believe BitFuFu is more favorable than StepStone Group.

Summary

StepStone Group beats BitFuFu on 8 of the 14 factors compared between the two stocks.

About StepStone Group

StepStone Group Inc. is a private equity and venture capital firm specializing in direct, fund of funds, secondary direct, and secondary indirect investments. For direct investment, it seeks to invest in private debt, venture debt, incubation, mezzanine, distressed/vulture, seed/startup, early venture, mid venture, late venture, emerging growth, later stage, turnaround, growth capital, industry consolidation, recapitalization, buyout investments in mature and middle market companies. It prefers to invest in natural resources, technology, healthcare, services, materials, manufacturing, consumer durables, apparel, hotels, restaurants and leisure, media, retailing, power, utilities consumer staples, financials, telecommunication services, clean energy/renewables, transport, social, natural capital, infrastructure, corporate, real estate, credit and real asset. The firm invests globally with a focus on United States, North America, Europe, Asia, Latin America, Middle East, Africa, Brazil, Mexico, Argentina, Colombia, New Zealand, China, India, Korea, Japan, Taiwan, and Australia region. The firm invests between 5% and 40% in emerging markets. For fund of fund investment, it seeks to invest in private equity funds, venture capital funds, Special situation funds, Real estate funds, Infrastructure funds, mezzanine funds, and turnaround/distressed funds. It considers investments in both domestic and international funds. It also seeks to make co-investments and follow-on investments and considers partial interests in funds. StepStone Group Inc. was founded in 2007 and is based in New York, New York with additional offices across North America, South America, Europe, Australia and Asia.

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.