Coinbase Global, Inc. (COIN)vs SMCI Holdings, Inc. (SMCI)

Quick verdict

COIN and SMCI Holdings present contrasting profiles. COIN trades at 49.08x trailing earnings and 7.28x sales, generating a 13.78% net margin and 5.68% ROE, with revenue growth of 20.07% over five years but a -53.45% three-year EPS CAGR. SMCI Holdings shows negative profitability across the board, with a -12.96% operating margin, -7.89% net margin, -18.28% ROE and -5.07% ROIC, alongside negative three- and five-year revenue CAGRs of -4.3% and -4.43%. The supplied data lists SMCI Holdings in the Healthcare/Drug Manufacturers industry with an unusually large $2.79 trillion market cap against these weak fundamentals, an inconsistency worth noting when interpreting the comparison. Verdicts score valuation as a tie, growth and momentum favouring COIN (grade A on quality and momentum), and balance sheet and income favouring SMCI Holdings (grade B). Overall scores stand at 2.5 for COIN versus 3.5 for SMCI Holdings.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

COIN operates as a cryptoeconomy infrastructure provider, described as delivering financial and technological solutions across US and international markets, classified under Financial Services - Data & Stock Exchanges. SMCI Holdings is classified under Healthcare - Drug Manufacturers, with the supplied description offering no further operational detail beyond sector placement. The two businesses therefore sit in unrelated industries, meaning any comparison reflects differing sector dynamics, risk exposures and revenue drivers rather than direct competitors.

Valuation

Valuation is scored a tie between the two. COIN trades on a trailing P/E of 49.08x, forward P/E of 36.74x, price-to-sales of 7.28x, price-to-book of 3.15x and EV/EBITDA of 31.64x, with an FCF yield of 1.96% and a negative PEG of -1.12 reflecting its negative three-year EPS growth. SMCI Holdings shows no meaningful trailing or forward P/E (both listed as 0), a price-to-sales ratio of 19.57x, price-to-book of 2.94x, EV/EBITDA of 15.52x and a lower FCF yield of 0.61%, with PEG also at 0. The absence of a P/E for SMCI Holdings reflects its negative earnings, making direct multiple comparisons difficult across the two names.

Growth profile

Growth is scored in COIN's favour (grade A vs the comparison). COIN's revenue CAGR stands at 9.4% over three years and 20.07% over five years, though its EPS CAGR is -53.45% over three years, recovering to 38.73% over five years. SMCI Holdings shows contraction on both revenue measures, with a -4.3% three-year and -4.43% five-year revenue CAGR, alongside negative EPS CAGRs of -5.59% (three-year) and -2.88% (five-year). On the growth metrics supplied, COIN demonstrates positive top-line expansion while SMCI Holdings has shrunk on both revenue and earnings bases across the periods measured.

Profitability and quality

Quality metrics favour COIN, which carries an overall quality grade of A. COIN reports a gross margin of 75.94%, operating margin of 0.43%, net margin of 13.78%, ROE of 5.68% and ROIC of 0.1%. SMCI Holdings shows materially weaker figures, with a gross margin of 33.7%, negative operating margin of -12.96%, negative net margin of -7.89%, negative ROE of -18.28% and negative ROIC of -5.07%. Across every profitability measure supplied, COIN posts positive returns while SMCI Holdings posts losses at the operating, net and equity-return levels.

Balance-sheet risk

Balance sheet strength is scored in SMCI Holdings' favour (grade B). COIN holds cash of $70.19 billion against total debt of $117.39 billion, a net debt/EBITDA ratio of -0.28, a current ratio of 2.14 and interest coverage of 28.4x. SMCI Holdings holds cash of $34.995 billion against total debt of $29.822 billion, a net debt/EBITDA ratio of -0.86, a higher current ratio of 2.88 and stronger interest coverage of 43.56x. Both companies show negative net debt/EBITDA, indicating cash exceeds debt on an EBITDA-adjusted basis, though SMCI Holdings shows a more conservative liquidity and coverage position on the ratios provided.

Price performance and shareholder returns

Momentum favours COIN (grade A), despite a year-to-date return of -26.37%; its one-year return is 6.34% and three-year annualised return is 28.41%, though its five-year annualised return is -4.64% with a maximum five-year drawdown of -50.24%. SMCI Holdings posts a stronger year-to-date return of 23.16% but a slightly negative one-year return of -1.45%, a modest 0.78% three-year annualised return, and a notably stronger 32.67% five-year annualised return with a shallower maximum drawdown of -26.29%. COIN also carries a much higher beta of 3.351 versus SMCI Holdings' 1.65, indicating greater historical price volatility relative to the market.

Which stock fits which investor

Based on the supplied verdicts, COIN is tagged as a high-volatility style investment and is identified as best suited to investors prioritising quality, reflecting its grade A on both quality and momentum despite a lower overall score of 2.5. SMCI Holdings is tagged for income and mature-style characteristics and is identified as best suited to investors prioritising value, growth, or income, supported by its dividend yield of 3.17%, payout ratio of 22.96%, buyback yield of 2.16%, and higher overall score of 3.5. The two profiles suit different objectives: COIN's data emphasises higher volatility and quality metrics, while SMCI Holdings' data emphasises income generation and a more moderate five-year drawdown of -26.29% versus COIN's -50.24%.

• Value: SMCI
• Growth: SMCI
• Income: SMCI
• Quality: COIN

Frequently asked questions

Which company has stronger profitability metrics?

COIN shows stronger profitability across all measures supplied, with a 75.94% gross margin, 13.78% net margin, 5.68% ROE and 0.1% ROIC, all positive. SMCI Holdings reports negative figures on operating margin (-12.96%), net margin (-7.89%), ROE (-18.28%) and ROIC (-5.07%).

How do valuations compare between COIN and SMCI Holdings?

Valuation is scored a tie. COIN trades at 49.08x trailing earnings and 7.28x sales, while SMCI Holdings has no meaningful P/E due to negative earnings but trades at 19.57x sales. COIN's EV/EBITDA of 31.64x is higher than SMCI Holdings' 15.52x.

Which stock has paid a dividend?

SMCI Holdings pays a dividend yield of 3.17% with a payout ratio of 22.96%. COIN's dividend yield is listed at 0%, indicating no dividend payment in the supplied data.

Which stock has been more volatile historically?

COIN carries a beta of 3.351 compared with SMCI Holdings' 1.65, and COIN's maximum five-year drawdown of -50.24% is deeper than SMCI Holdings' -26.29%, indicating greater historical price swings for COIN based on the supplied data.

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