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

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

Institutional and Insider Ownership

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

Profitability

This table compares Bakkt and loanDepot’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%
loanDepot	-11.22%	-18.22%	-2.01%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bakkt	$780.10 million	0.18	-$74.85 million	($16.53)	-0.64
loanDepot	$974.02 million	0.86	-$110.14 million	($0.62)	-4.15

Bakkt has higher earnings, but lower revenue 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.

Risk and Volatility

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

Analyst Ratings

This is a summary of current recommendations and price targets for Bakkt and loanDepot, as reported by MarketBeat.com.

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

Bakkt currently has a consensus target price of $13.13, suggesting a potential upside of 23.94%. loanDepot has a consensus target price of $2.10, suggesting a potential downside of 18.45%. Given Bakkt’s stronger consensus rating and higher possible upside, research analysts clearly believe Bakkt is more favorable than loanDepot.

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 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.