Sphere 3D (NASDAQ:ANY – Get Free Report) and Bakkt (NYSE:BKKT – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Profitability
This table compares Sphere 3D and Bakkt’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sphere 3D | -94.39% | -72.59% | -37.92% |
| Bakkt | -4.26% | -37.42% | -6.25% |
Institutional & Insider Ownership
17.3% of Sphere 3D shares are held by institutional investors. Comparatively, 11.1% of Bakkt shares are held by institutional investors. 5.6% of Sphere 3D shares are held by insiders. Comparatively, 1.8% of Bakkt shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sphere 3D | $21.91 million | 1.04 | -$23.41 million | ($1.85) | -0.68 |
| Bakkt | $780.10 million | 0.30 | -$74.85 million | ($18.61) | -0.93 |
Sphere 3D has higher earnings, but lower revenue than Bakkt. Bakkt is trading at a lower price-to-earnings ratio than Sphere 3D, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Sphere 3D and Bakkt, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sphere 3D | 0 | 0 | 1 | 0 | 3.00 |
| Bakkt | 1 | 0 | 1 | 0 | 2.00 |
Sphere 3D currently has a consensus target price of $4.00, indicating a potential upside of 220.00%. Bakkt has a consensus target price of $13.13, indicating a potential downside of 24.53%. Given Sphere 3D’s stronger consensus rating and higher possible upside, research analysts plainly believe Sphere 3D is more favorable than Bakkt.
Volatility & Risk
Sphere 3D has a beta of 2.87, suggesting that its stock price is 187% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 4.23, suggesting that its stock price is 323% more volatile than the S&P 500.
Summary
Sphere 3D beats Bakkt on 8 of the 13 factors compared between the two stocks.
About Sphere 3D
Sphere 3D Corp. engages in the bitcoin mining business. It is involved with digital asset mining pool operators to provide computing power to the mining pools. The company is based in Stamford, Connecticut.
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.
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