Reviewing Golden Arrow Merger (NASDAQ:GAMC) & Gevo (NASDAQ:GEVO)

Gevo (NASDAQ:GEVO) and Golden Arrow Merger (NASDAQ:GAMC) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares Gevo and Golden Arrow Merger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gevo	-407.97%	-13.50%	-11.52%
Golden Arrow Merger	N/A	N/A	-24.61%

Earnings & Valuation

This table compares Gevo and Golden Arrow Merger”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gevo	$18.15 million	19.91	-$66.21 million	($0.29)	-5.28
Golden Arrow Merger	N/A	N/A	-$1.47 million	N/A	N/A

Golden Arrow Merger has lower revenue, but higher earnings than Gevo.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Gevo and Golden Arrow Merger, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gevo	0	1	2	0	2.67
Golden Arrow Merger	0	0	0	0	N/A

Gevo currently has a consensus price target of $5.68, suggesting a potential upside of 271.46%. Given Gevo’s higher possible upside, research analysts plainly believe Gevo is more favorable than Golden Arrow Merger.

Risk and Volatility

Gevo has a beta of 2.98, suggesting that its share price is 198% more volatile than the S&P 500. Comparatively, Golden Arrow Merger has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Institutional & Insider Ownership

35.2% of Gevo shares are held by institutional investors. Comparatively, 5.5% of Golden Arrow Merger shares are held by institutional investors. 4.0% of Gevo shares are held by company insiders. Comparatively, 77.4% of Golden Arrow Merger shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Gevo beats Golden Arrow Merger on 6 of the 10 factors compared between the two stocks.

About Gevo

Gevo, Inc. operates as a carbon abatement company. It operates through three segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company focuses on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels. It offers renewable gasoline and diesel, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein. The company was formerly known as Methanotech, Inc. and changed its name to Gevo, Inc. in March 2006. Gevo, Inc. was incorporated in 2005 and is headquartered in Englewood, Colorado.

About Golden Arrow Merger

Golden Arrow Merger Corp. does not have significant operations. The company intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It focuses on acquiring companies in the healthcare and healthcare-related infrastructure industries in the United States and other developed countries. The company was incorporated in 2020 and is based in New York, New York. Golden Arrow Merger Corp. is a subsidiary of Golden Arrow Sponsor, LLC.