Financial Contrast: Stem (NYSE:STEM) and TeraWulf (NASDAQ:WULF)
by Teresa Graham · The Cerbat GemStem (NYSE:STEM – Get Free Report) and TeraWulf (NASDAQ:WULF – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Profitability
This table compares Stem and TeraWulf’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stem | -49.37% | N/A | -21.85% |
| TeraWulf | -1,179.94% | -458.62% | -8.54% |
Volatility and Risk
Stem has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.7, indicating that its share price is 270% more volatile than the S&P 500.
Institutional & Insider Ownership
61.6% of Stem shares are held by institutional investors. Comparatively, 62.5% of TeraWulf shares are held by institutional investors. 5.1% of Stem shares are held by insiders. Comparatively, 15.9% of TeraWulf shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for Stem and TeraWulf, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stem | 1 | 4 | 0 | 0 | 1.80 |
| TeraWulf | 1 | 2 | 16 | 3 | 2.95 |
Stem currently has a consensus price target of $7.45, indicating a potential upside of 61.36%. TeraWulf has a consensus price target of $34.21, indicating a potential upside of 136.46%. Given TeraWulf’s stronger consensus rating and higher probable upside, analysts plainly believe TeraWulf is more favorable than Stem.
Valuation and Earnings
This table compares Stem and TeraWulf”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stem | $148.03 million | 0.30 | $137.76 million | ($8.49) | -0.54 |
| TeraWulf | $165.19 million | 43.70 | -$661.42 million | ($4.37) | -3.31 |
Stem has higher earnings, but lower revenue than TeraWulf. TeraWulf is trading at a lower price-to-earnings ratio than Stem, indicating that it is currently the more affordable of the two stocks.
Summary
TeraWulf beats Stem on 11 of the 15 factors compared between the two stocks.
About Stem
Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.
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.