Hut 8 (NASDAQ:HUT) and Bakkt (NYSE:BKKT) Critical Survey

Hut 8 (NASDAQ:HUT) and Bakkt (NYSE:BKKT) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Profitability

This table compares Hut 8 and Bakkt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hut 8	N/A	N/A	N/A
Bakkt	-2.84%	-62.65%	-5.94%

Institutional & Insider Ownership

31.8% of Hut 8 shares are owned by institutional investors. Comparatively, 11.1% of Bakkt shares are owned by institutional investors. 12.0% of Hut 8 shares are owned by insiders. Comparatively, 1.8% of Bakkt shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Hut 8 and Bakkt”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$671.72 million	1.98	-$186.77 million	N/A	N/A
Bakkt	$3.49 billion	0.04	-$74.85 million	($7.93)	-1.18

Bakkt has higher revenue and earnings than Hut 8.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hut 8 and Bakkt, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	0	0	13	1	3.07
Bakkt	0	0	0	0	0.00

Hut 8 presently has a consensus target price of $27.08, indicating a potential upside of 112.20%. Given Hut 8’s stronger consensus rating and higher possible upside, analysts plainly believe Hut 8 is more favorable than Bakkt.

Risk and Volatility

Hut 8 has a beta of 4.34, suggesting that its share price is 334% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 5.41, suggesting that its share price is 441% more volatile than the S&P 500.

Summary

Hut 8 beats Bakkt on 10 of the 13 factors compared between the two stocks.

About Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.

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.