Bakkt (NYSE:BKKT – Get Free Report) and OppFi (NYSE:OPFI – Get Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
11.1% of Bakkt shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 1.8% of Bakkt shares are held by insiders. Comparatively, 84.0% of OppFi shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
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
| 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 currently has a consensus target price of $13.13, indicating a potential downside of 29.85%. OppFi has a consensus target price of $4.25, indicating a potential upside of 25.74%. Given OppFi’s stronger consensus rating and higher possible upside, analysts plainly believe OppFi is more favorable than Bakkt.
Earnings and Valuation
This table compares Bakkt and OppFi’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bakkt | $780.10 million | 0.32 | -$74.85 million | ($18.61) | -1.01 |
| OppFi | $508.95 million | 0.74 | -$1.00 million | $0.06 | 56.51 |
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 stock price is 382% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
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.
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