Bakkt (NYSE:BKKT – Get Free Report) and MDB Capital (NASDAQ:MDBH – Get Free Report) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Analyst Ratings
This is a breakdown of recent recommendations for Bakkt and MDB Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bakkt | 1 | 0 | 1 | 0 | 2.00 |
| MDB Capital | 0 | 0 | 0 | 0 | 0.00 |
Bakkt currently has a consensus target price of $13.13, indicating a potential downside of 50.53%. Given Bakkt’s stronger consensus rating and higher possible upside, equities analysts clearly believe Bakkt is more favorable than MDB Capital.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bakkt | $1.91 billion | 0.19 | -$74.85 million | ($12.23) | -2.17 |
| MDB Capital | $5.99 million | 11.86 | -$6.97 million | ($2.87) | -2.66 |
MDB Capital has lower revenue, but higher earnings than Bakkt. MDB Capital 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 MDB Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bakkt | -2.84% | -62.65% | -5.94% |
| MDB Capital | N/A | -75.31% | -63.59% |
Risk and Volatility
Bakkt has a beta of 4.71, indicating that its share price is 371% more volatile than the S&P 500. Comparatively, MDB Capital has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Institutional and Insider Ownership
11.1% of Bakkt shares are owned by institutional investors. Comparatively, 0.4% of MDB Capital shares are owned by institutional investors. 1.8% of Bakkt shares are owned by company insiders. Comparatively, 55.5% of MDB Capital 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.
Summary
Bakkt beats MDB Capital on 9 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 MDB Capital
MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.
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