StoneX Group (NASDAQ:SNEX) versus Bakkt (NYSE:BKKT) Head-To-Head Review

StoneX Group (NASDAQ:SNEX) and Bakkt (NYSE:BKKT) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Volatility and Risk

StoneX Group has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Bakkt has a beta of 6.06, suggesting that its stock price is 506% more volatile than the S&P 500.

Earnings & Valuation

This table compares StoneX Group and Bakkt”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneX Group	$132.38 billion	0.05	$305.90 million	$4.19	12.60
Bakkt	$2.34 billion	0.09	-$107.21 million	$0.45	10.28

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

Profitability

This table compares StoneX Group and Bakkt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StoneX Group	0.33%	20.18%	1.05%
Bakkt	-2.78%	-41.11%	-30.36%

Insider and Institutional Ownership

75.9% of StoneX Group shares are owned by institutional investors. Comparatively, 11.1% of Bakkt shares are owned by institutional investors. 11.8% of StoneX Group shares are owned by company insiders. Comparatively, 10.1% of Bakkt shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for StoneX Group and Bakkt, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneX Group	0	3	1	0	2.25
Bakkt	1	0	1	0	2.00

StoneX Group presently has a consensus price target of $112.00, indicating a potential upside of 112.08%. Bakkt has a consensus price target of $12.00, indicating a potential upside of 159.46%. Given Bakkt’s higher probable upside, analysts clearly believe Bakkt is more favorable than StoneX Group.

Summary

StoneX Group beats Bakkt on 10 of the 13 factors compared between the two stocks.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.

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.