Bakkt (NYSE:BKKT – Get Free Report) and StoneX Group (NASDAQ:SNEX – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Institutional & Insider Ownership
11.1% of Bakkt shares are held by institutional investors. Comparatively, 75.9% of StoneX Group shares are held by institutional investors. 10.1% of Bakkt shares are held by company insiders. Comparatively, 11.8% of StoneX Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Bakkt has a beta of 6.06, meaning that its stock price is 506% more volatile than the S&P 500. Comparatively, StoneX Group has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.
Earnings and Valuation
This table compares Bakkt and StoneX Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bakkt | $2.34 billion | 0.09 | -$107.21 million | $0.45 | 10.28 |
| StoneX Group | $132.38 billion | 0.05 | $305.90 million | $4.19 | 12.60 |
StoneX Group has higher revenue and earnings than Bakkt. Bakkt is trading at a lower price-to-earnings ratio than StoneX Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bakkt and StoneX Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bakkt | -2.78% | -41.11% | -30.36% |
| StoneX Group | 0.33% | 20.18% | 1.05% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Bakkt and StoneX Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bakkt | 1 | 0 | 1 | 0 | 2.00 |
| StoneX Group | 0 | 3 | 1 | 0 | 2.25 |
Bakkt presently has a consensus target price of $12.00, suggesting a potential upside of 159.46%. StoneX Group has a consensus target price of $112.00, suggesting a potential upside of 112.08%. Given Bakkt’s higher probable upside, analysts clearly believe Bakkt is more favorable than StoneX Group.
Summary
StoneX Group beats Bakkt on 10 of the 13 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 StoneX Group
StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.
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