Analyzing Brookfield Asset Management (NYSE:BAM) and Bakkt (NYSE:BKKT)

Brookfield Asset Management (NYSE:BAMGet Free Report) and Bakkt (NYSE:BKKTGet Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Profitability

This table compares Brookfield Asset Management and Bakkt’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Asset Management 48.89% 31.50% 15.75%
Bakkt -2.78% -41.11% -30.36%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Brookfield Asset Management and Bakkt, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Asset Management 1 6 5 1 2.46
Bakkt 1 0 1 0 2.00

Brookfield Asset Management presently has a consensus target price of $58.65, indicating a potential upside of 19.97%. Bakkt has a consensus target price of $12.00, indicating a potential upside of 45.37%. Given Bakkt’s higher possible upside, analysts plainly believe Bakkt is more favorable than Brookfield Asset Management.

Risk and Volatility

Brookfield Asset Management has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 5.92, suggesting that its share price is 492% more volatile than the S&P 500.

Earnings & Valuation

This table compares Brookfield Asset Management and Bakkt”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Asset Management $4.82 billion 16.63 $2.48 billion $1.72 28.42
Bakkt $1.12 billion 0.33 -$107.21 million $0.45 18.34

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

Institutional and Insider Ownership

68.4% of Brookfield Asset Management shares are held by institutional investors. Comparatively, 11.1% of Bakkt shares are held by institutional investors. 10.1% of Bakkt shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Brookfield Asset Management beats Bakkt on 12 of the 15 factors compared between the two stocks.

About Brookfield Asset Management

(Get Free Report)

Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.

About Bakkt

(Get Free Report)

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.

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