Analysis of the investment in CION (NYSE: CION) and the acquisition of Skydeck (NASDAQ: SKYA)

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CION Investment (NYSE:CION – Get Rating) and Skydeck Acquisition (NASDAQ:SKYA – Get Rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on their risk strength, analyst recommendations, dividends, institutional ownership, earnings, valuation, and profitability.

Analyst Recommendations

This is a breakdown of the current recommendations for CION Investment and Skydeck Acquisition, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
CION Investment 0 1 0 0 2.00
Acquisition of Skydeck 0 0 0 0 N / A

CION Investment currently has a consensus price target of $11.50, suggesting a potential upside of 7.58%. Considering CION Investment’s likely higher upside, analysts clearly believe that CION Investment is more favorable than Skydeck Acquisition.

Institutional and Insider Ownership

3.5% of CION Investment shares are held by institutional investors. 0.1% of the shares of CION Investment are held by insiders of the company. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of CION Investment and Skydeck Acquisition.

Net margins Return on equity return on assets
CION Investment 47.28% 8.18% 4.25%
Acquisition of Skydeck N / A -71.86% 5.29%

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of CION Investment and Skydeck Acquisition.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
CION Investment $157.35 million 3.87 $118.76 million $1.11 9.63
Acquisition of Skydeck N / A N / A $5.70 million N / A N / A

CION Investment has higher revenue and profit than Skydeck Acquisition.

Summary

CION Investment beats Skydeck Acquisition on 7 of the 8 factors compared between the two stocks.

About CION Investment (Get a rating)

CION Investment Corporation is a business development company. It specializes in investments in senior secured loans, including unitranche loans, first lien loans, second lien loans, long-term subordinated loans and mezzanine loans; equity interests such as warrants or options; and corporate bonds; and other debt securities in middle market companies. The company invests in growth capital, acquisitions, leveraged buyouts, market/product expansion, refinancing and recapitalization. The fund also invests up to 30% of its assets opportunistically in other types of investments, including securities of large public companies and foreign securities. It also invests in the secondary loan market. The fund does not invest in start-up companies, turnaround situations or companies with speculative business plans. The fund prefers to invest in high-tech industries, healthcare, pharmaceuticals, business services, media, chemicals, plastics, rubber, telecommunications, consumer services, advertising, l printing and publishing, consumer goods, durable goods, diversified financial services and other industries. It also invests in home building, restaurants, beverage and tobacco bars, broadcasting, vending, distribution of consumables, food beverages and tobacco, energy, oil, gas and consumable fuels, insurance, aerospace and defence, industrial machinery, paper and forest products machinery. , information technology, metals and mining, and real estate. He is primarily looking to invest in the United States. The fund seeks to invest between $5 million and $50 million in companies with an EBITDA between $25 million and $75 million with an average target holding of $25 million. It also buys minority stakes in the form of common or preferred stock in the target companies, usually in conjunction with its debt investments or through co-investment with a financial sponsor. The fund seeks to exit its investments through an initial public offering of common stock, merger, sale or other recapitalization.

About the acquisition of Skydeck (Get a rating)

Skydeck Acquisition Corp. has no significant activities. It intends to effect a merger, stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. The company was incorporated in 2021 and is based in Providence, Rhode Island.



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