loanDepot (NYSE:LDI) and Bakkt (NYSE:BKKT) Head to Head Analysis

Bakkt (NYSE:BKKT) and loanDepot (NYSE:LDI) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Institutional & Insider Ownership

11.1% of Bakkt shares are owned by institutional investors. Comparatively, 39.4% of loanDepot shares are owned by institutional investors. 1.8% of Bakkt shares are owned by insiders. Comparatively, 83.0% of loanDepot shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Bakkt and loanDepot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bakkt	-3.85%	-47.29%	-5.92%
loanDepot	-11.22%	-18.22%	-2.01%

Earnings & Valuation

This table compares Bakkt and loanDepot”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bakkt	$1.78 billion	0.07	-$74.85 million	($16.53)	-0.58
loanDepot	$707.87 million	0.97	-$110.14 million	($0.62)	-3.42

Bakkt has higher revenue and earnings than loanDepot. loanDepot is trading at a lower price-to-earnings ratio than Bakkt, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Bakkt has a beta of 4.72, meaning that its share price is 372% more volatile than the S&P 500. Comparatively, loanDepot has a beta of 3.43, meaning that its share price is 243% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Bakkt and loanDepot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bakkt	1	0	1	0	2.00
loanDepot	1	2	0	0	1.67

Bakkt presently has a consensus price target of $13.13, indicating a potential upside of 37.72%. loanDepot has a consensus price target of $2.10, indicating a potential downside of 0.94%. Given Bakkt’s stronger consensus rating and higher possible upside, equities analysts plainly believe Bakkt is more favorable than loanDepot.

Summary

Bakkt beats loanDepot on 8 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 loanDepot

loanDepot, Inc. engages in originating, financing, selling, and servicing residential mortgage loans in the United States. The company offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. It also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies. The company was founded in 2010 and is headquartered in Irvine, California.