Comparing Golden Arrow Merger (NASDAQ:GAMC) & Sensient Technologies (NYSE:SXT)

Sensient Technologies (NYSE:SXT) and Golden Arrow Merger (NASDAQ:GAMC) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sensient Technologies	5.80%	11.41%	6.02%
Golden Arrow Merger	N/A	N/A	-24.61%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sensient Technologies and Golden Arrow Merger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensient Technologies	0	0	1	0	3.00
Golden Arrow Merger	0	0	0	0	0.00

Sensient Technologies currently has a consensus target price of $85.00, indicating a potential upside of 6.82%. Given Sensient Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Sensient Technologies is more favorable than Golden Arrow Merger.

Earnings & Valuation

This table compares Sensient Technologies 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
Sensient Technologies	$1.53 billion	2.20	$93.39 million	$2.09	38.07
Golden Arrow Merger	N/A	N/A	-$1.47 million	N/A	N/A

Sensient Technologies has higher revenue and earnings than Golden Arrow Merger.

Volatility & Risk

Sensient Technologies has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Golden Arrow Merger has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.

Insider and Institutional Ownership

90.9% of Sensient Technologies shares are held by institutional investors. Comparatively, 5.5% of Golden Arrow Merger shares are held by institutional investors. 1.4% of Sensient Technologies 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Sensient Technologies beats Golden Arrow Merger on 10 of the 11 factors compared between the two stocks.

About Sensient Technologies

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Specialty Markets trade names. Sensient Technologies Corporation was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.

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.