Financial analysis of the acquisition of InterPrivate II (NYSE:IPVA) and CION Investment (NYSE:CION)


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

Profitability

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

Net margins Return on equity return on assets
Acquisition InterPrivate II N / A -13,789.61% -1.01%
CION Investment 75.48% 7.94% 4.16%

Analyst Recommendations

This is a breakdown of the current ratings for InterPrivate II Acquisition and CION Investment, as provided by MarketBeat.

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

CION Investment has a consensus target price of $12.50, suggesting a potential upside of 4.25%. Given CION Investment’s likely higher upside, analysts clearly believe that CION Investment is more favorable than InterPrivate II Acquisition.

Insider and Institutional Ownership

72.3% of the shares of InterPrivate II Acquisition are held by institutional investors. By comparison, 1.6% of CION Investment’s shares are held by institutional investors. 0.1% of CION Investment shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock is poised for long-term growth.

Benefits and evaluation

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

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Acquisition InterPrivate II N / A N / A -$2.62 million N / A N / A
CION Investment $157.35 million 8.65 $118.76 million $1.41 8.50

CION Investment has higher revenue and profit than InterPrivate II Acquisition.

Summary

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

About the acquisition of InterPrivate II (Get an assessment)

InterPrivate II Acquisition Corp. is focused on completing a merger, capital exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The company was incorporated in 2020 and is based in New York, New York.

About CION Investment (Get an assessment)

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.



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Sarah J. Greer