Which is a better long term play, MARA or RIOT?

``` The deep research logic is organized as follows: Okay, let's tackle this question about whether MARA or RIOT is a better long-term play. First, I need to look at the data provided in the references. The user is interested in long-term investments, so I should focus on metrics like revenue growth, profitability trends, and valuation ratios. Starting with the financials from the references, MARA has a much higher revenue and net income compared to RIOT. In the latest quarter, MARA reported $238.49 million in revenue and a net income of $808.21 million, which is a significant swing from a loss in the previous year. RIOT, on the other hand, had $161.39 million in revenue but a net loss of $296.37 million. That's a big difference in profitability. Looking at the year-over-year growth rates, MARA's revenue grew 64%, which is impressive. RIOT's revenue growth was only 1.04%, which is almost flat. The net income growth for MARA is 505%, while RIOT's net income actually decreased by 240%. This shows that MARA is not only growing but also turning a profit, which is crucial for long-term sustainability. Valuation-wise, MARA has a P/E ratio of 9.03, which is reasonable given its profitability. RIOT has a negative P/E ratio because it's still losing money, which is a red flag for long-term investors. The P/S ratio for MARA is 7.68, which is lower than RIOT's 10.53, indicating that MARA might be undervalued relative to its sales. The 5-year CAGR data is only available for MARA's revenue, which is 250.34%. That's an astronomical growth rate, showing consistent expansion over the years. RIOT doesn't have this data, but given its recent financials, it's likely not as strong. MARA's strategic moves into AI and energy solutions, as mentioned in some articles, could provide future growth avenues. They've partnered with companies like TAE Power Solutions and Pato AI, which aligns with the user's interest in AI and tech sectors. RIOT is more focused on Bitcoin mining and hasn't shown the same level of diversification into emerging tech areas. Considering the user's profile, they're into tech and AI, so MARA's moves into those areas might be more appealing. Plus, MARA's profitability and lower valuation metrics make it a safer bet for long-term growth compared to RIOT, which is still struggling with losses and hasn't shown a clear path to sustained profitability. ``` ### **Conclusion** **MARA (MARA Holdings)** is the better long-term play compared to **RIOT (Riot Platforms)** based on **profitability**, **revenue growth**, and **valuation metrics**. MARA demonstrates **sustainable profitability**, **operational scale**, and **strategic diversification** into AI and energy solutions, while RIOT faces **acute financial risks** and **uncertain growth prospects**. --- ### **Analysis** #### **1. Financial Health: Profitability & Growth** | Metric | MARA (2025Q2) | RIOT (2025Q1) | |----------------------------|-------------------------------|--------------------------| | **Revenue** | $238.49M (YoY +64%) | $161.39M (YoY +1.04%) | | **Net Income** | $808.21M (YoY +505%) | -$296.37M (YoY -240%) | | **Diluted EPS** | $1.84 (YoY +356%) | -$0.9 (YoY -211%) | | **5-Year Revenue CAGR** | 250.34% | N/A | **Key Takeaway**: MARA has achieved **record-breaking profitability** and **exponential revenue growth**, driven by its **Bitcoin mining operations** and **strategic diversification** into AI/energy solutions. RIOT, however, remains **unprofitable** with **stagnant revenue growth**, making it a **high-risk bet** for long-term investors. --- #### **2. Valuation: Price-to-Earnings (P/E) & Price-to-Sales (P/S)** | Metric | MARA | RIOT | |----------------------------|------------|------------| | **P/E (TTM)** | 9.03 | -12.11 | | **P/S (TTM)** | 7.68 | 10.53 | **Key Takeaway**: MARA is **undervalued** relative to its peers, with a **reasonable P/E ratio** and **lower P/S ratio** compared to RIOT. RIOT’s **negative P/E** reflects its **ongoing losses**, making it a **speculative play** rather than a long-term holding. --- #### **3. Strategic Positioning** - **MARA**: - **Diversification**: Expanding into **AI infrastructure** (e.g., partnerships with TAE Power Solutions and Pato AI) . - **Energy Efficiency**: Investing in **immersion cooling technology** to reduce mining costs . - **Liquidity**: Secured $950M in convertible notes to fund growth initiatives . - **RIOT**: - **Focus**: Reliant on **Bitcoin mining** with limited diversification . - **Debt**: High leverage ($612.58M in long-term debt) . - **Risks**: Regulatory uncertainty and **price volatility** in the cryptocurrency market . **Key Takeaway**: MARA’s **strategic diversification** into AI and energy solutions aligns with the user’s interest in **US Tech** and **Artificial Intelligence** sectors. RIOT’s **narrow focus** on Bitcoin mining makes it more vulnerable to market fluctuations. --- #### **4. Long-Term Risks** - **MARA**: - **Competition**: Risk of losing market share to peers like Core Scientific (CORZ) or Riot Platforms (RIOT). - **Regulatory**: Potential oversight in the cryptocurrency sector. - **RIOT**: - **Solvency**: High debt levels and persistent losses could lead to **liquidity crises**. - **Market Volatility**: Dependence on Bitcoin prices exposes RIOT to **price swings**. **Key Takeaway**: MARA’s **profitability** and **diversification** mitigate long-term risks, while RIOT’s **financial instability** and **market exposure** make it a **high-risk** choice. --- ### **Conclusion** For a **long-term investment**, **MARA** offers **sustainable growth**, **operational scale**, and **strategic alignment** with emerging tech trends. RIOT, while innovative, remains **too speculative** due to its **unprofitability** and **high debt**. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |MARA|MARA.O|MARA Holdings|2024 Q2|1.45139E8|-1.99659E8|-0.72|186| |RIOT|RIOT.O|Riot Platforms|2024 Q2|7.0018E7|-8.4449E7|-0.32|186| |MARA|MARA.O|MARA Holdings|2024 Q3|1.31647E8|-1.24789E8|-0.42|186| |RIOT|RIOT.O|Riot Platforms|2024 Q3|8.4786E7|-1.54362E8|-0.54|186| |MARA|MARA.O|MARA Holdings|2024 Q4|2.14394E8|5.28283E8|1.24|186| |RIOT|RIOT.O|Riot Platforms|2024 Q4|1.42558E8|1.36435E8||186| |MARA|MARA.O|MARA Holdings|2025 Q1|2.13884E8|-5.33443E8|-1.55|186| |RIOT|RIOT.O|Riot Platforms|2025 Q1|1.61387E8|-2.96367E8|-0.9|186| |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |MARA|MARA.O|MARA Holdings|2024 Q2|-2127.839767908949|77.52051761885541|-928.5714285714283|186| |RIOT|RIOT.O|Riot Platforms|2024 Q2|-208.35432869609667|-8.758258512620701|-100|186| |MARA|MARA.O|MARA Holdings|2024 Q3|-31897.17948717949|34.54097640241597|-23.52941176470587|186| |RIOT|RIOT.O|Riot Platforms|2024 Q3|-92.856071964018|63.39249580852171|-22.727272727272734|186| |MARA|MARA.O|MARA Holdings|2024 Q4|247.95291978975933|36.7587773014901|87.87878787878786|186| |RIOT|RIOT.O|Riot Platforms|2024 Q4|245.9129861568886|80.88362178348476||186| |MARA|MARA.O|MARA Holdings|2025 Q1|-258.2104735551186|29.47130110534026|-223.015873015873|186| |RIOT|RIOT.O|Riot Platforms|2025 Q1|-239.9429588671102|103.52476795803068|-211.1111111111111|186|