Reviewing Bakkt (NYSE:BKKT) and Deutsche Bank (NYSE:DB)

Deutsche Bank (NYSE:DB) and Bakkt (NYSE:BKKT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

27.9% of Deutsche Bank shares are owned by institutional investors. Comparatively, 11.1% of Bakkt shares are owned by institutional investors. 10.1% of Bakkt shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank	11.59%	8.63%	0.48%
Bakkt	-0.21%	-21.17%	-17.93%

Risk and Volatility

Deutsche Bank has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Bakkt has a beta of 4.7, suggesting that its share price is 370% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Deutsche Bank and Bakkt, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank	1	4	10	1	2.69
Bakkt	1	0	1	0	2.00

Deutsche Bank presently has a consensus price target of $43.00, indicating a potential upside of 15.24%. Bakkt has a consensus price target of $12.00, indicating a potential upside of 201.13%. Given Bakkt’s higher possible upside, analysts plainly believe Bakkt is more favorable than Deutsche Bank.

Earnings & Valuation

This table compares Deutsche Bank and Bakkt”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank	$33.22 billion	2.18	$7.47 billion	$3.86	9.67
Bakkt	$862.12 million	0.21	-$107.21 million	$0.45	8.86

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

Summary

Deutsche Bank beats Bakkt on 12 of the 15 factors compared between the two stocks.

About Deutsche Bank

Deutsche Bank is a global financial services company headquartered in Frankfurt, Germany. Founded in Berlin in 1870 to support German and international trade, it has grown into one of Germany’s largest banking groups. The bank serves businesses, governments, institutional investors and individuals in Germany and other markets around the world. Its Corporate Bank provides services such as cash management, payments, trade finance and lending, while its Investment Bank offers capital-markets, advisory, financing and trading services.

About Bakkt

Bakkt Holdings, Inc. provides technology that helps businesses offer cryptocurrency services to their customers. Its platform supports crypto buying and selling, along with custody and related infrastructure, which companies can integrate into their own products and services. The company serves businesses including financial institutions and fintech firms, offering tools designed to connect customers with digital assets. Bakkt was founded in 2018 by Intercontinental Exchange and initially operated across cryptocurrency and loyalty services before shifting its focus toward crypto infrastructure.