Bitcoin Depot (NASDAQ:BTM – Get Free Report) and Bakkt (NYSE:BKKT – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Institutional & Insider Ownership
9.2% of Bitcoin Depot shares are owned by institutional investors. Comparatively, 11.1% of Bakkt shares are owned by institutional investors. 20.1% of Bitcoin Depot shares are owned by company insiders. Comparatively, 1.8% of Bakkt shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Bitcoin Depot and Bakkt’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bitcoin Depot | -3.10% | -307.37% | -22.72% |
| Bakkt | -3.85% | -47.29% | -5.92% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bitcoin Depot | $629.50 million | 0.15 | -$26.10 million | ($1.87) | -0.83 |
| Bakkt | $1.78 billion | 0.07 | -$74.85 million | ($18.61) | -0.52 |
Bitcoin Depot has higher earnings, but lower revenue than Bakkt. Bitcoin Depot is trading at a lower price-to-earnings ratio than Bakkt, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Bitcoin Depot and Bakkt, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bitcoin Depot | 0 | 1 | 2 | 0 | 2.67 |
| Bakkt | 1 | 0 | 1 | 0 | 2.00 |
Bitcoin Depot currently has a consensus target price of $3.67, indicating a potential upside of 133.52%. Bakkt has a consensus target price of $13.13, indicating a potential upside of 32.98%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than Bakkt.
Risk and Volatility
Bitcoin Depot has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500. Comparatively, Bakkt has a beta of 4.76, suggesting that its share price is 376% more volatile than the S&P 500.
Summary
Bitcoin Depot beats Bakkt on 8 of the 14 factors compared between the two stocks.
About Bitcoin Depot
Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.
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.
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