Financial Survey: Bakkt (NYSE:BKKT) & Sound Point Meridian Capital (NYSE:SPMC)

Bakkt (NYSE:BKKT) and Sound Point Meridian Capital (NYSE:SPMC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Insider & Institutional Ownership

11.1% of Bakkt shares are owned by institutional investors. 10.1% of Bakkt shares are owned by insiders. Comparatively, 0.9% of Sound Point Meridian Capital shares are owned 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.

Risk & Volatility

Bakkt has a beta of 4.7, indicating that its stock price is 370% more volatile than the S&P 500. Comparatively, Sound Point Meridian Capital has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Bakkt and Sound Point Meridian Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bakkt	1	0	1	0	2.00
Sound Point Meridian Capital	0	2	1	1	2.75

Bakkt currently has a consensus price target of $12.00, suggesting a potential upside of 227.51%. Sound Point Meridian Capital has a consensus price target of $15.12, suggesting a potential upside of 141.42%. Given Bakkt’s higher probable upside, equities analysts clearly believe Bakkt is more favorable than Sound Point Meridian Capital.

Profitability

This table compares Bakkt and Sound Point Meridian Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bakkt	-0.21%	-21.17%	-17.93%
Sound Point Meridian Capital	N/A	N/A	N/A

Valuation and Earnings

This table compares Bakkt and Sound Point Meridian Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bakkt	$862.12 million	0.19	-$107.21 million	$0.45	8.14
Sound Point Meridian Capital	-$121.96 million	-1.05	-$118.47 million	($5.78)	-1.08

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

Summary

Bakkt beats Sound Point Meridian Capital on 9 of the 14 factors compared between the two stocks.

About Bakkt

Bakkt Holdings, Inc. provides technology that helps businesses offer cryptocurrency services to their customers. Its platform supports crypto buying and selling, along with custody and related infrastructure, which companies can integrate into their own products and services. The company serves businesses including financial institutions and fintech firms, offering tools designed to connect customers with digital assets. Bakkt was founded in 2018 by Intercontinental Exchange and initially operated across cryptocurrency and loyalty services before shifting its focus toward crypto infrastructure.

About Sound Point Meridian Capital

Sound Point Meridian Capital, Inc. (NYSE: SPMC) is a closed-end investment company focused on investing in collateralized loan obligations (CLOs). The company primarily seeks exposure to CLO equity and junior debt tranches, which are backed by pools of senior secured loans made to corporate borrowers. Sound Point Meridian Capital is externally managed by an affiliate of Sound Point Capital Management, an alternative investment manager. Its investment strategy is designed to provide shareholders with income and potential capital appreciation through a diversified portfolio of CLO investments rather than through the direct operation of businesses or the sale of consumer products and services.