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 better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Insider and Institutional Ownership
11.1% of Bakkt shares are owned by institutional investors. Comparatively, 0.3% of MDB Capital shares are owned by institutional investors. 1.8% of Bakkt shares are owned by insiders. Comparatively, 55.5% of MDB Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Bakkt and MDB Capital, as provided 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 |
Volatility & Risk
Bakkt has a beta of 4.71, indicating that its stock price is 371% more volatile than the S&P 500. Comparatively, MDB Capital has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.
Earnings & Valuation
This table compares Bakkt and MDB Capital”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bakkt | $780.10 million | 0.45 | -$74.85 million | ($12.23) | -2.12 |
| MDB Capital | $1.30 million | 58.68 | -$6.97 million | ($2.87) | -2.87 |
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% |
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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