diff --git a/util/daghash/hash.go b/util/daghash/hash.go
index 8d0da7725..9b70d093e 100644
--- a/util/daghash/hash.go
+++ b/util/daghash/hash.go
@@ -224,7 +224,16 @@ func HashToBig(hash *Hash) *big.Int {
 //   +1 if hash >  target
 //
 func (hash *Hash) Cmp(target *Hash) int {
-	return HashToBig(hash).Cmp(HashToBig(target))
+	// We compare the hashes backwards because Hash is stored as a little endian byte array.
+	for i := HashSize - 1; i >= 0; i-- {
+		switch {
+		case hash[i] < target[i]:
+			return -1
+		case hash[i] > target[i]:
+			return 1
+		}
+	}
+	return 0
 }
 
 // Less returns true iff hash a is less than hash b
diff --git a/util/daghash/hash_test.go b/util/daghash/hash_test.go
index 174777684..6088055e0 100644
--- a/util/daghash/hash_test.go
+++ b/util/daghash/hash_test.go
@@ -9,6 +9,7 @@ import (
 	"encoding/hex"
 	"errors"
 	"math/big"
+	"math/rand"
 	"reflect"
 	"testing"
 )
@@ -425,3 +426,43 @@ func TestSort(t *testing.T) {
 		}
 	}
 }
+
+func hashFlipBit(hash Hash, bit int) Hash {
+	word := bit / 8
+	bit = bit % 8
+	hash[word] ^= 1 << bit
+	return hash
+}
+
+func TestHash_Cmp(t *testing.T) {
+	r := rand.New(rand.NewSource(1))
+
+	for i := 0; i < 100; i++ {
+		hash := Hash{}
+		n, err := r.Read(hash[:])
+		if err != nil {
+			t.Fatalf("Failed generating a random hash '%s'", err)
+		} else if n != len(hash) {
+			t.Fatalf("Failed generating a random hash, expected reading: %d. instead read: %d.", len(hash), n)
+
+		}
+		hashBig := HashToBig(&hash)
+		// Iterate bit by bit, flip it and compare.
+		for bit := 0; bit < HashSize*8; bit++ {
+			newHash := hashFlipBit(hash, bit)
+			if hash.Cmp(&newHash) != hashBig.Cmp(HashToBig(&newHash)) {
+				t.Errorf("Hash.Cmp disagrees with big.Int.Cmp newHash: %s, hash: %s", newHash, hash)
+			}
+		}
+	}
+}
+
+func BenchmarkHash_Cmp(b *testing.B) {
+	hash0, err := NewHashFromStr("3333333333333333333333333333333333333333333333333333333333333333")
+	if err != nil {
+		b.Fatal(err)
+	}
+	for n := 0; n < b.N; n++ {
+		hash0.Cmp(hash0)
+	}
+}