Comparing REX American Resources (NYSE:REX) & Golden Arrow Merger (NASDAQ:GAMC)

Golden Arrow Merger (NASDAQ:GAMC) and REX American Resources (NYSE:REX) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Profitability

This table compares Golden Arrow Merger and REX American Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Arrow Merger	N/A	-22.43%	-24.61%
REX American Resources	8.43%	11.53%	10.31%

Insider and Institutional Ownership

5.5% of Golden Arrow Merger shares are owned by institutional investors. Comparatively, 88.1% of REX American Resources shares are owned by institutional investors. 77.4% of Golden Arrow Merger shares are owned by company insiders. Comparatively, 11.7% of REX American Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Golden Arrow Merger has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, REX American Resources has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares Golden Arrow Merger and REX American Resources’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Arrow Merger	N/A	N/A	-$1.47 million	N/A	N/A
REX American Resources	$833.38 million	0.96	$60.94 million	$3.75	12.16

REX American Resources has higher revenue and earnings than Golden Arrow Merger.

Analyst Ratings

This is a summary of current ratings and target prices for Golden Arrow Merger and REX American Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Arrow Merger	0	0	0	0	N/A
REX American Resources	0	0	1	0	3.00

REX American Resources has a consensus price target of $65.00, indicating a potential upside of 42.58%. Given REX American Resources’ higher possible upside, analysts plainly believe REX American Resources is more favorable than Golden Arrow Merger.

Summary

REX American Resources beats Golden Arrow Merger on 9 of the 10 factors compared between the two stocks.

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.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.