Reviewing Katapult (NASDAQ:KPLT) & BlackSky Technology (NYSE:BKSY)

Katapult (NASDAQ:KPLT) and BlackSky Technology (NYSE:BKSY) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Valuation and Earnings

This table compares Katapult and BlackSky Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Katapult	$247.19 million	0.13	-$25.92 million	($5.92)	-1.18
BlackSky Technology	$102.09 million	9.71	-$57.22 million	($3.14)	-8.77

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

Institutional and Insider Ownership

26.8% of Katapult shares are owned by institutional investors. Comparatively, 27.2% of BlackSky Technology shares are owned by institutional investors. 14.8% of Katapult shares are owned by insiders. Comparatively, 3.8% of BlackSky Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Katapult and BlackSky Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Katapult	1	1	0	0	1.50
BlackSky Technology	1	0	6	0	2.71

Katapult currently has a consensus target price of $10.00, suggesting a potential upside of 43.47%. BlackSky Technology has a consensus target price of $28.00, suggesting a potential upside of 1.63%. Given Katapult’s higher possible upside, equities research analysts plainly believe Katapult is more favorable than BlackSky Technology.

Volatility and Risk

Katapult has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, BlackSky Technology has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500.

Profitability

This table compares Katapult and BlackSky Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Katapult	-9.98%	N/A	-31.31%
BlackSky Technology	-87.11%	-54.48%	-15.96%

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.

About BlackSky Technology

BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally. The company's Spectra software platform processes a range of observations from its satellite constellation and various external data sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet-of-Things (IoT) connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds. It offers a range of services related to object, change and anomaly detection, site monitoring, and enhanced analytics, which helps to detect key pattern of life changes in critical locations, including strategic locations and infrastructure comprising ports, airports, and construction sites; retail activity; commodities stockpiles; and other sites that contain critical commodities and supply chain inventory. In addition, the company develops and delivers satellites and payload systems; and provides professional and engineering services. Its products and services are used in national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and other applications. BlackSky Technology Inc. was incorporated in 2018 and is headquartered in Herndon, Virginia.