Bakkt (NYSE:BKKT) and Sound Point Meridian Capital (NYSE:SPMC) Head-To-Head Comparison

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

Volatility & Risk

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

Earnings and Valuation

This table compares Bakkt and Sound Point Meridian Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bakkt	$2.34 billion	0.07	-$107.21 million	$0.45	7.50
Sound Point Meridian Capital	$72.51 million	1.69	-$118.49 million	($5.78)	-1.04

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.

Analyst Ratings

This is a summary of recent ratings and target prices for Bakkt and Sound Point Meridian Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bakkt	1	0	2	0	2.33
Sound Point Meridian Capital	0	2	1	1	2.75

Bakkt currently has a consensus target price of $12.00, indicating a potential upside of 255.56%. Sound Point Meridian Capital has a consensus target price of $12.83, indicating a potential upside of 114.42%. Given Bakkt’s higher possible upside, research analysts plainly 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

Institutional and Insider Ownership

11.1% of Bakkt shares are owned by institutional investors. 10.1% of Bakkt shares are owned by company insiders. Comparatively, 0.9% of Sound Point Meridian Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Bakkt beats Sound Point Meridian Capital on 9 of the 15 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. is a publicly traded investment company focused on collateralized loan obligations (CLOs). It invests primarily in CLO equity and debt securities, which provide exposure to portfolios of corporate loans. Through these investments, the company participates in the financing of businesses whose loans are held in CLO portfolios. Its investment approach centers on selecting CLO securities rather than directly originating loans to companies. Sound Point Meridian Capital is externally managed by an affiliate of Sound Point Capital Management, a credit-focused investment manager.