Analyzing OppFi (NYSE:OPFI) and Bakkt (NYSE:BKKT)

Bakkt (NYSE:BKKT) and OppFi (NYSE:OPFI) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Bakkt and OppFi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bakkt	-4.26%	-37.42%	-6.25%
OppFi	0.83%	25.16%	8.14%

Analyst Recommendations

This is a breakdown of current recommendations for Bakkt and OppFi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bakkt	1	0	1	0	2.00
OppFi	0	0	2	0	3.00

Bakkt presently has a consensus price target of $13.13, suggesting a potential downside of 31.17%. OppFi has a consensus price target of $4.25, suggesting a potential upside of 25.37%. Given OppFi’s stronger consensus rating and higher probable upside, analysts plainly believe OppFi is more favorable than Bakkt.

Earnings and Valuation

This table compares Bakkt and OppFi’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bakkt	$1.62 billion	0.16	-$74.85 million	($18.61)	-1.02
OppFi	$515.92 million	0.73	-$1.00 million	$0.06	56.50

OppFi has lower revenue, but higher earnings than Bakkt. Bakkt is trading at a lower price-to-earnings ratio than OppFi, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Bakkt has a beta of 4.82, indicating that its share price is 382% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Institutional and Insider Ownership

11.1% of Bakkt shares are owned by institutional investors. Comparatively, 7.1% of OppFi shares are owned by institutional investors. 1.8% of Bakkt shares are owned by company insiders. Comparatively, 84.0% of OppFi shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

OppFi beats Bakkt on 11 of the 14 factors compared between the two stocks.

About Bakkt

Bakkt Holdings, Inc. offers software as a service and application programming interface solutions for crypto and loyalty, powering engagement, and performance. The company operates Bakkt Marketplace, a platform that enables consumers to buy, sell, and store crypto in an embedded web experience; Bakkt Crypto, a platform that supports clients with a range of crypto solutions; and Bakkt Trust, institutional-grade qualified custody solution for market participants. Its platform also offers a range of loyalty solutions, including redemption solutions for various rewards categories comprising travel, gift cards, and merchandise; travel solutions that offer a retail e-commerce booking platform, as well as live-agent booking and servicing; and unified shopping experience. The company was founded in 2018 and is headquartered in Alpharetta, Georgia.

About OppFi

OppFi Inc. operates a cialty finance platform that allows banks to offer credit access. Its platform facilitates the OppLoans, an installment loan product; SalaryTap, a payroll deduction secured installment loan product; and OppFi Card, a credit card product. OppFi Inc. was founded in 2012 and is headquartered in Chicago, Illinois.