Critical Survey: Bakkt (NYSE:BKKT) and BlackSky Technology (NYSE:BKSY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bakkt	-0.77%	-99.39%	-16.63%
BlackSky Technology	-82.04%	-52.27%	-18.12%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bakkt	$3.49 billion	0.05	-$46.66 million	($4.43)	-1.97
BlackSky Technology	$102.09 million	6.08	-$57.22 million	($3.36)	-5.21

Bakkt has higher revenue and earnings than BlackSky Technology. BlackSky Technology is trading at a lower price-to-earnings ratio than Bakkt, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

11.1% of Bakkt shares are owned by institutional investors. Comparatively, 27.2% of BlackSky Technology shares are owned by institutional investors. 2.5% of Bakkt shares are owned by insiders. Comparatively, 3.8% of BlackSky Technology shares are owned 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.

Volatility and Risk

Bakkt has a beta of 5.31, indicating that its stock price is 431% more volatile than the S&P 500. Comparatively, BlackSky Technology has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bakkt and BlackSky Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bakkt	0	0	0	0	0.00
BlackSky Technology	0	0	6	0	3.00

BlackSky Technology has a consensus price target of $23.50, suggesting a potential upside of 34.19%. Given BlackSky Technology’s stronger consensus rating and higher probable upside, analysts clearly believe BlackSky Technology is more favorable than Bakkt.

Summary

BlackSky Technology 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 BlackSky Technology

BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally. The company's Spectra software platform processes a range of observations from its satellite constellation and various external data sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet-of-Things (IoT) connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds. It offers a range of services related to object, change and anomaly detection, site monitoring, and enhanced analytics, which helps to detect key pattern of life changes in critical locations, including strategic locations and infrastructure comprising ports, airports, and construction sites; retail activity; commodities stockpiles; and other sites that contain critical commodities and supply chain inventory. In addition, the company develops and delivers satellites and payload systems; and provides professional and engineering services. Its products and services are used in national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and other applications. BlackSky Technology Inc. was incorporated in 2018 and is headquartered in Herndon, Virginia.