Head-To-Head Analysis: Bakkt (NYSE:BKKT) & AppLovin (NASDAQ:APP)

AppLovin (NASDAQ:APP) and Bakkt (NYSE:BKKT) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AppLovin and Bakkt, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppLovin	0	5	20	0	2.80
Bakkt	1	0	1	0	2.00

AppLovin presently has a consensus target price of $654.50, indicating a potential upside of 45.87%. Bakkt has a consensus target price of $13.00, indicating a potential upside of 35.77%. Given AppLovin’s stronger consensus rating and higher possible upside, equities research analysts clearly believe AppLovin is more favorable than Bakkt.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppLovin	$5.48 billion	27.61	$3.33 billion	$9.75	46.02
Bakkt	$3.49 billion	0.09	-$46.66 million	($5.13)	-1.87

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

Institutional & Insider Ownership

41.9% of AppLovin shares are held by institutional investors. Comparatively, 11.1% of Bakkt shares are held by institutional investors. 13.7% of AppLovin shares are held by company insiders. Comparatively, 2.5% of Bakkt shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AppLovin	57.42%	245.64%	52.02%
Bakkt	-1.07%	-45.27%	-16.75%

Volatility & Risk

AppLovin has a beta of 2.51, meaning that its stock price is 151% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 5.97, meaning that its stock price is 497% more volatile than the S&P 500.

Summary

AppLovin beats Bakkt on 13 of the 14 factors compared between the two stocks.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.

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.