Head-To-Head Analysis: loanDepot (NYSE:LDI) and Bakkt (NYSE:BKKT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
loanDepot	-11.22%	-18.22%	-2.01%
Bakkt	-3.85%	-47.29%	-5.92%

Earnings and Valuation

This table compares loanDepot and Bakkt”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
loanDepot	$974.02 million	0.69	-$110.14 million	($0.62)	-3.34
Bakkt	$780.10 million	0.16	-$74.85 million	($16.53)	-0.57

Bakkt has lower revenue, but higher earnings than loanDepot. loanDepot 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 recent ratings for loanDepot and Bakkt, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
loanDepot	1	2	0	0	1.67
Bakkt	1	0	1	0	2.00

loanDepot currently has a consensus target price of $2.10, indicating a potential upside of 1.45%. Bakkt has a consensus target price of $13.13, indicating a potential upside of 39.63%. Given Bakkt’s stronger consensus rating and higher possible upside, analysts clearly believe Bakkt is more favorable than loanDepot.

Institutional and Insider Ownership

39.4% of loanDepot shares are held by institutional investors. Comparatively, 11.1% of Bakkt shares are held by institutional investors. 83.0% of loanDepot shares are held by insiders. Comparatively, 1.8% of Bakkt shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

loanDepot has a beta of 3.46, meaning that its stock price is 246% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 4.71, meaning that its stock price is 371% more volatile than the S&P 500.

About loanDepot

loanDepot, Inc. engages in originating, financing, selling, and servicing residential mortgage loans in the United States. The company offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. It also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies. The company was founded in 2010 and is headquartered in Irvine, California.

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.