SBI (OTCMKTS:SBHGF – Get Rating) and Bakkt (NYSE:BKKT – Get Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Volatility & Risk
SBI has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 4.67, meaning that its share price is 367% more volatile than the S&P 500.
This table compares SBI and Bakkt’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bakkt has a consensus price target of $2.45, indicating a potential upside of 76.26%. Given Bakkt’s higher probable upside, analysts plainly believe Bakkt is more favorable than SBI.
Insider & Institutional Ownership
8.4% of Bakkt shares are owned by institutional investors. 1.7% of Bakkt shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares SBI and Bakkt’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SBI||$6.80 billion||0.70||$3.27 billion||$11.40||1.71|
|Bakkt||$55.02 million||6.89||-$578.10 million||($7.57)||-0.18|
SBI has higher revenue and earnings than Bakkt. Bakkt is trading at a lower price-to-earnings ratio than SBI, indicating that it is currently the more affordable of the two stocks.
Bakkt beats SBI on 8 of the 13 factors compared between the two stocks.
SBI Holdings, Inc. manages the SBI group which engages in the provision of comprehensive financial services. It operates through the following segments: Financial Services, Asset Management, Biotechnology-related, and Others. The Financial Services segment covers finance-related businesses and the provision of information regarding financial products including securities brokerage, banking services, and life, property and casualty insurance. The Asset Management segment consists of fund management and investment in Internet technology, biotechnology, environmental energy, and finance-related venture companies in Japan and overseas. The Biotechnology-related segment develops, manufactures, and sells pharmaceuticals, cosmetics, and health foods. The Others segment includes housing and real estate businesses such as the development and trading of investment property and the operation of online intermediate services. The company was founded on July 8, 1999 and is headquartered in Tokyo, Japan.
Bakkt Holdings, Inc. operates a digital asset platform. The company's platform enables consumers to buy, sell, convert, and spend digital assets. Its customers include merchants, retailers, and financial institutions. Bakkt Holdings, Inc. has a strategic alliance with the Global Payments to collaborate on use cases starting with enabling cryptocurrency redemption in customer loyalty programs offered by bankcard clients, as well as expanding its banking-as-a-service offerings to include consumer access to cryptocurrency. The company was founded in 2018 and is headquartered in Alpharetta, Georgia. Bakkt Holdings, Inc. operates as a subsidiary of Intercontinental Exchange Holdings, Inc.
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