Her Imports (OTCMKTS:HHER) versus Applied Digital (NASDAQ:APLD) Critical Review

Applied Digital (NASDAQ:APLD) and Her Imports (OTCMKTS:HHER) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

65.7% of Applied Digital shares are owned by institutional investors. 23.7% of Applied Digital shares are owned by insiders. Comparatively, 1.0% of Her Imports shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Applied Digital has a beta of 4.12, suggesting that its share price is 312% more volatile than the S&P 500. Comparatively, Her Imports has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Profitability

This table compares Applied Digital and Her Imports’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Digital	-61.84%	-75.46%	-20.50%
Her Imports	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Applied Digital and Her Imports, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Digital	0	0	5	0	3.00
Her Imports	0	0	0	0	N/A

Applied Digital currently has a consensus price target of $9.20, indicating a potential upside of 239.48%. Given Applied Digital’s higher possible upside, equities research analysts clearly believe Applied Digital is more favorable than Her Imports.

Valuation and Earnings

This table compares Applied Digital and Her Imports’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Digital	$143.91 million	2.31	-$44.65 million	($0.79)	-3.43
Her Imports	N/A	N/A	N/A	N/A	N/A

Her Imports has lower revenue, but higher earnings than Applied Digital.

Summary

Applied Digital beats Her Imports on 6 of the 9 factors compared between the two stocks.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

About Her Imports

Her Imports operates as a retailer of human hair extensions and related haircare and beauty products in the United States. It sells human hair products, including clip-ins and wigs under the Her Imports brand; haircare products, such as various shampoos and conditioners, and adhesives under the OSIworks brand; and beauty products and related accessories comprising silk bonnets, as well as styling tools under the Her Imports brand and makeup products under the Skin & Yang brand. The company also sells its products to consultation studios, as well as through its Website, herimports.com. As of December 31, 2018, it operated 16 retail locations. The company was formerly known as EZJR, Inc. and changed its name to Her Imports in January 2017. Her Imports was founded in 2011 and is headquartered in Las Vegas, Nevada.