Contrasting Bitcoin Depot (NASDAQ:BTM) and Marqeta (NASDAQ:MQ)

Bitcoin Depot (NASDAQ:BTM) and Marqeta (NASDAQ:MQ) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares Bitcoin Depot and Marqeta”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$614.85 million	0.01	-$6.18 million	$1.90	0.26
Marqeta	$677.21 million	2.51	-$13.93 million	$0.11	148.36

Bitcoin Depot has higher earnings, but lower revenue than Marqeta. Bitcoin Depot is trading at a lower price-to-earnings ratio than Marqeta, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bitcoin Depot and Marqeta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitcoin Depot	-0.94%	-70.95%	-5.08%
Marqeta	1.53%	1.36%	0.71%

Institutional and Insider Ownership

9.2% of Bitcoin Depot shares are held by institutional investors. Comparatively, 78.6% of Marqeta shares are held by institutional investors. 51.8% of Bitcoin Depot shares are held by company insiders. Comparatively, 13.7% of Marqeta shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Bitcoin Depot and Marqeta, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitcoin Depot	1	3	0	0	1.75
Marqeta	2	7	1	1	2.09

Bitcoin Depot presently has a consensus price target of $4.10, indicating a potential upside of 733.50%. Marqeta has a consensus price target of $19.75, indicating a potential upside of 21.02%. Given Bitcoin Depot’s higher probable upside, equities analysts plainly believe Bitcoin Depot is more favorable than Marqeta.

Risk & Volatility

Bitcoin Depot has a beta of 3.12, indicating that its stock price is 212% more volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Summary

Marqeta beats Bitcoin Depot on 10 of the 15 factors compared between the two stocks.

About Bitcoin Depot

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

About Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.