Coinbase Global (NASDAQ:COIN – Get Free Report) and Bakkt (NYSE:BKKT – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Risk & Volatility
Coinbase Global has a beta of 3.34, indicating that its share price is 234% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 4.71, indicating that its share price is 371% more volatile than the S&P 500.
Profitability
This table compares Coinbase Global and Bakkt’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Coinbase Global | 29.76% | 14.81% | 0.41% |
| Bakkt | -2.84% | -62.65% | -5.94% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Coinbase Global | $3.11 billion | 23.86 | $94.87 million | $5.86 | 50.55 |
| Bakkt | $780.10 million | 0.49 | -$74.85 million | ($12.23) | -2.28 |
Coinbase Global has higher revenue and earnings than Bakkt. Bakkt is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Coinbase Global and Bakkt, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Coinbase Global | 1 | 9 | 10 | 0 | 2.45 |
| Bakkt | 1 | 0 | 1 | 0 | 2.00 |
Coinbase Global currently has a consensus target price of $255.22, indicating a potential downside of 13.83%. Bakkt has a consensus target price of $13.13, indicating a potential downside of 52.87%. Given Coinbase Global’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Coinbase Global is more favorable than Bakkt.
Insider and Institutional Ownership
68.8% of Coinbase Global shares are held by institutional investors. Comparatively, 11.1% of Bakkt shares are held by institutional investors. 23.4% of Coinbase Global 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 stock will outperform the market over the long term.
Summary
Coinbase Global beats Bakkt on 13 of the 14 factors compared between the two stocks.
About Coinbase Global
Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.
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.
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