Comparing Bakkt (NYSE:BKKT) and MGT Capital Investments (OTCMKTS:MGTI)

Bakkt (NYSE:BKKT) and MGT Capital Investments (OTCMKTS:MGTI) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bakkt	$1.91 billion	0.19	-$74.85 million	($12.23)	-2.12
MGT Capital Investments	$400,000.00	0.86	-$6.13 million	N/A	N/A

MGT Capital Investments has lower revenue, but higher earnings than Bakkt.

Profitability

This table compares Bakkt and MGT Capital Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bakkt	-2.84%	-62.65%	-5.94%
MGT Capital Investments	N/A	N/A	N/A

Risk and Volatility

Bakkt has a beta of 5.49, meaning that its stock price is 449% more volatile than the S&P 500. Comparatively, MGT Capital Investments has a beta of 2.73, meaning that its stock price is 173% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bakkt and MGT Capital Investments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bakkt	1	0	1	0	2.00
MGT Capital Investments	0	0	0	0	0.00

Bakkt presently has a consensus price target of $13.13, suggesting a potential downside of 49.34%. Given Bakkt’s stronger consensus rating and higher probable upside, equities analysts clearly believe Bakkt is more favorable than MGT Capital Investments.

Institutional and Insider Ownership

11.1% of Bakkt shares are owned by institutional investors. 1.8% of Bakkt shares are owned by company insiders. Comparatively, 3.8% of MGT Capital Investments shares are owned by company 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.

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 MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.