Bakkt (NYSE:BKKT) and China Merchants Bank (OTCMKTS:CIHKY) Financial Comparison

Bakkt (NYSE:BKKTGet Free Report) and China Merchants Bank (OTCMKTS:CIHKYGet Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Risk & Volatility

Bakkt has a beta of 4.56, meaning that its share price is 356% more volatile than the S&P 500. Comparatively, China Merchants Bank has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares Bakkt and China Merchants Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bakkt -24.89% 25.41% 10.25%
China Merchants Bank 30.06% 14.88% 1.35%

Earnings & Valuation

This table compares Bakkt and China Merchants Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bakkt $54.60 million 5.13 -$578.10 million ($1.79) -0.57
China Merchants Bank $67.88 billion 1.39 $20.51 billion $3.94 4.76

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

Institutional & Insider Ownership

8.4% of Bakkt shares are owned by institutional investors. 1.9% of Bakkt shares are owned by 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bakkt and China Merchants Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bakkt 1 0 1 0 2.00
China Merchants Bank 0 1 0 0 2.00

Bakkt currently has a consensus price target of $1.70, indicating a potential upside of 66.67%. Given Bakkt’s higher probable upside, analysts plainly believe Bakkt is more favorable than China Merchants Bank.

Summary

Bakkt beats China Merchants Bank on 8 of the 13 factors compared between the two stocks.

About Bakkt

(Get Free Report)

Bakkt Holdings, Inc. offers a platform for crypto and redeeming loyalty points. The company's institutional-grade technology platform offers various solutions, such as Custody, an institutional-grade custody solution for market participants; Crypto Connect, a platform that enables consumers, businesses, and institutions to buy, sell, and store crypto in a digital experience; Crypto Rewards that focuses on enabling customers to earn crypto rewards, as well as redeem existing reward currencies into crypto; and Crypto Payouts for customers to automatically invest a portion of payments into crypto. Its platform also offers a range of loyalty solutions, including redemption solutions for various rewards categories comprising merchandise, gift cards, and digital experiences; 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 China Merchants Bank

(Get Free Report)

China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers current, demand, time, call, savings, notice, and renminbi accounts. Its loan products include personal commercial real estate, consumption, housing, and car loans; loans to finance for studying abroad; micro-business loans; mortgage loans for equipment; joint guarantee, special guarantee, and housing mortgage loan; bank acceptance, discount, liquid capital, and fixed asset loans; and loans for vessels. The company also offers credit cards; insurance products; open-ended funds; discount and guarantees for commercial bills, redemption of commercial bills, and guaranteed discount for commercial acceptance bills; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. In addition, it provides forfeiting and risk participation, escrow, cross-border RMB clearing, and interbank services; and risk and financial management, cross-border RMB and oversea financing, international factoring and settlement, and trade finance services. Further, the company offers financial leasing and guarantee, investment and wealth management, forex option and gold trading, forex express trading, international, offshore and private banking, custody, pension, and electronic banking services. The company also operates in Hong Kong, New York, London, Singapore, Luxembourg, Sydney, and Taipei. China Merchants Bank Co., Ltd. was founded in 1987 and is headquartered in Shenzhen, China.

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