Reviewing Bitcoin Depot (NASDAQ:BTM) and Bakkt (NYSE:BKKT)

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

Valuation and Earnings

This table compares Bakkt and Bitcoin Depot”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bakkt	$1.78 billion	0.07	-$74.85 million	($18.61)	-0.52
Bitcoin Depot	$629.50 million	0.15	-$26.10 million	($1.87)	-0.83

Bitcoin Depot has lower revenue, but higher earnings 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bakkt	-3.85%	-47.29%	-5.92%
Bitcoin Depot	-3.10%	-307.37%	-22.72%

Analyst Recommendations

This is a breakdown of recent recommendations for Bakkt and Bitcoin Depot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bakkt	1	0	1	0	2.00
Bitcoin Depot	0	1	2	0	2.67

Bakkt currently has a consensus target price of $13.13, indicating a potential upside of 32.98%. Bitcoin Depot has a consensus target price of $3.67, indicating a potential upside of 133.52%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than Bakkt.

Insider & Institutional Ownership

11.1% of Bakkt shares are owned by institutional investors. Comparatively, 9.2% of Bitcoin Depot shares are owned by institutional investors. 1.8% of Bakkt shares are owned by insiders. Comparatively, 20.1% of Bitcoin Depot shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

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

Summary

Bitcoin Depot beats Bakkt on 8 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 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.