Head-To-Head Contrast: Bitcoin Depot (NASDAQ:BTM) versus Bakkt (NYSE:BKKT)

Bitcoin Depot (NASDAQ:BTM) and Bakkt (NYSE:BKKT) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Institutional and 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Bitcoin Depot has a beta of -0.34, indicating that its stock price is 134% less volatile than the S&P 500. Comparatively, Bakkt has a beta of 4.76, indicating that its stock price is 376% more volatile than the S&P 500.

Earnings & Valuation

This table compares Bitcoin Depot and Bakkt”s gross revenue, earnings per share and valuation.

	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)	-0.85
Bakkt	$780.10 million	0.17	-$74.85 million	($18.61)	-0.53

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 Recommendations

This is a breakdown of current ratings and price targets for Bitcoin Depot and Bakkt, as reported by MarketBeat.com.

	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 presently has a consensus target price of $3.67, indicating a potential upside of 130.61%. Bakkt has a consensus target price of $13.13, indicating a potential upside of 33.11%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than Bakkt.

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%

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.