Bit Digital (NASDAQ:BTBT) and Skillsoft (NYSE:SKIL) Critical Review

Bit Digital (NASDAQ:BTBT) and Skillsoft (NYSE:SKIL) 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 profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Volatility & Risk

Bit Digital has a beta of 3.98, indicating that its share price is 298% more volatile than the S&P 500. Comparatively, Skillsoft has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500.

Valuation & Earnings

This table compares Bit Digital and Skillsoft”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bit Digital	$113.56 million	5.69	-$80.32 million	($0.68)	-2.72
Skillsoft	$512.67 million	0.12	-$139.82 million	($16.28)	-0.44

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

Insider & Institutional Ownership

47.7% of Bit Digital shares are held by institutional investors. Comparatively, 87.0% of Skillsoft shares are held by institutional investors. 1.8% of Bit Digital shares are held by insiders. Comparatively, 16.2% of Skillsoft shares are held by 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.

Profitability

This table compares Bit Digital and Skillsoft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bit Digital	-145.39%	-8.44%	-6.24%
Skillsoft	-27.27%	112.12%	2.30%

Analyst Ratings

This is a summary of recent recommendations and price targets for Bit Digital and Skillsoft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bit Digital	2	0	2	0	2.00
Skillsoft	1	1	0	0	1.50

Bit Digital presently has a consensus price target of $5.67, suggesting a potential upside of 206.31%. Given Bit Digital’s stronger consensus rating and higher possible upside, research analysts plainly believe Bit Digital is more favorable than Skillsoft.

About Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.

About Skillsoft

Skillsoft Corp. provides content and platform and instructor-led training services in the United States and internationally. The company's Content & Platform segment engages in the sale, marketing, and delivery of its content learning solutions in areas, such as leadership and business, technology and developer, and compliance comprising individualized coaching, as well as technical skill areas. This segment also offers Percipio, an AI-driven online learning platform that delivers a learning experience through SaaS solutions. Its Instructor-Led Training segment provides training solutions, including information technology and business skills for corporations and their employees by guiding its customers throughout their lifelong technology learning journey by offering relevant and up-to-date skills training through instructor-led and self-paced, vendor certified, and other proprietary offerings. The company markets and sells their offerings to businesses of many sizes, government agencies, educational institutions, and resellers. Skillsoft Corp. is headquartered in Greenwood Village, Colorado.