Soluna (NASDAQ:SLNH) and Bakkt (NYSE:BKKT) Financial Contrast

Soluna (NASDAQ:SLNH) and Bakkt (NYSE:BKKT) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Soluna and Bakkt, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soluna	0	0	0	0	N/A
Bakkt	1	0	1	0	2.00

Bakkt has a consensus price target of $13.13, indicating a potential downside of 14.72%. Given Bakkt’s higher possible upside, analysts clearly believe Bakkt is more favorable than Soluna.

Risk & Volatility

Soluna has a beta of 2.96, meaning that its share price is 196% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 4.8, meaning that its share price is 380% more volatile than the S&P 500.

Earnings and Valuation

This table compares Soluna and Bakkt’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Soluna	$21.07 million	0.80	-$29.20 million	($23.20)	-0.19
Bakkt	$780.10 million	0.26	-$74.85 million	($18.61)	-0.83

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

Institutional and Insider Ownership

23.2% of Soluna shares are owned by institutional investors. Comparatively, 11.1% of Bakkt shares are owned by institutional investors. 22.0% of Soluna shares are owned by insiders. Comparatively, 1.8% of Bakkt shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Soluna	-89.72%	-44.38%	-25.75%
Bakkt	-4.26%	-37.42%	-6.25%

Summary

Bakkt beats Soluna on 8 of the 13 factors compared between the two stocks.

About Soluna

Soluna Holdings, Inc. together with its subsidiaries, engages in the mining of cryptocurrency through data centers. It operates through two segments, Cryptocurrency Mining and Data Center Hosting. The company also operates in the blockchain business. In addition, the company develops and builds modular data centers that use for cryptocurrency mining. Further, it provides data center hosting services, including electrical power and network connectivity to cryptocurrency mining customers. The company was formerly known as Mechanical Technology Inc and as changed to Soluna Holdings, Inc. Soluna Holdings, Inc. was incorporated in 1961 and is headquartered in Albany, 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.