Bakkt (NYSE:BKKT – Get Free Report) and MarketWise (NASDAQ:MKTW – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Profitability
This table compares Bakkt and MarketWise’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bakkt | -1.07% | -45.27% | -16.75% |
| MarketWise | 1.70% | -2.62% | 2.56% |
Earnings & Valuation
This table compares Bakkt and MarketWise”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bakkt | $3.49 billion | 0.09 | -$46.66 million | ($5.13) | -1.93 |
| MarketWise | $342.21 million | 0.71 | $7.06 million | $2.52 | 6.00 |
MarketWise has lower revenue, but higher earnings than Bakkt. Bakkt is trading at a lower price-to-earnings ratio than MarketWise, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Bakkt has a beta of 5.93, suggesting that its stock price is 493% more volatile than the S&P 500. Comparatively, MarketWise has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
Institutional & Insider Ownership
11.1% of Bakkt shares are held by institutional investors. Comparatively, 23.0% of MarketWise shares are held by institutional investors. 2.5% of Bakkt shares are held by insiders. Comparatively, 29.3% of MarketWise shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Bakkt and MarketWise, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bakkt | 1 | 0 | 1 | 0 | 2.00 |
| MarketWise | 1 | 0 | 1 | 0 | 2.00 |
Bakkt currently has a consensus price target of $13.00, suggesting a potential upside of 31.21%. MarketWise has a consensus price target of $20.00, suggesting a potential upside of 32.28%. Given MarketWise’s higher possible upside, analysts clearly believe MarketWise is more favorable than Bakkt.
Summary
MarketWise beats Bakkt on 10 of the 12 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 MarketWise
MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.
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