MarketWise (NASDAQ:MKTW – Get Free Report) and Bakkt (NYSE:BKKT – Get Free Report) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Profitability
This table compares MarketWise and Bakkt’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MarketWise | 1.70% | -2.62% | 2.56% |
| Bakkt | -1.07% | -45.27% | -16.75% |
Analyst Ratings
This is a summary of current recommendations for MarketWise and Bakkt, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MarketWise | 1 | 0 | 1 | 0 | 2.00 |
| Bakkt | 1 | 0 | 1 | 0 | 2.00 |
Insider & Institutional Ownership
23.0% of MarketWise shares are held by institutional investors. Comparatively, 11.1% of Bakkt shares are held by institutional investors. 29.3% of MarketWise shares are held by company insiders. Comparatively, 2.5% of Bakkt shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
MarketWise has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Bakkt has a beta of 5.93, indicating that its share price is 493% more volatile than the S&P 500.
Earnings & Valuation
This table compares MarketWise and Bakkt”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MarketWise | $408.70 million | 0.59 | $7.06 million | $2.52 | 6.02 |
| Bakkt | $3.49 billion | 0.11 | -$46.66 million | ($5.13) | -2.33 |
MarketWise has higher earnings, but lower revenue 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.
Summary
MarketWise beats Bakkt on 10 of the 12 factors compared between the two stocks.
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.
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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