Analyzing Ross Acquisition Corp II (NYSE:ROSS) and Trinity Capital (NASDAQ:TRIN)

Trinity Capital (NASDAQ:TRIN) and Ross Acquisition Corp II (NYSE:ROSS) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Institutional and Insider Ownership

24.6% of Trinity Capital shares are held by institutional investors. Comparatively, 27.8% of Ross Acquisition Corp II shares are held by institutional investors. 6.4% of Trinity Capital shares are held by company insiders. Comparatively, 76.4% of Ross Acquisition Corp II shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Trinity Capital and Ross Acquisition Corp II”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Capital	$175.49 million	5.13	$76.89 million	$2.06	6.95
Ross Acquisition Corp II	N/A	N/A	$14.87 million	N/A	N/A

Trinity Capital has higher revenue and earnings than Ross Acquisition Corp II.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Trinity Capital and Ross Acquisition Corp II, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Capital	1	1	2	0	2.25
Ross Acquisition Corp II	0	0	0	0	0.00

Trinity Capital presently has a consensus price target of $15.63, suggesting a potential upside of 9.11%. Given Trinity Capital’s stronger consensus rating and higher possible upside, equities analysts clearly believe Trinity Capital is more favorable than Ross Acquisition Corp II.

Profitability

This table compares Trinity Capital and Ross Acquisition Corp II’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Capital	40.73%	15.90%	7.14%
Ross Acquisition Corp II	N/A	N/A	N/A

Volatility & Risk

Trinity Capital has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Ross Acquisition Corp II has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500.

Summary

Trinity Capital beats Ross Acquisition Corp II on 9 of the 11 factors compared between the two stocks.

About Trinity Capital

Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix, Arizona with additional offices in the United States.

About Ross Acquisition Corp II

Ross Acquisition Corp II does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. Ross Acquisition Corp II was incorporated in 2021 and is based in Palm Beach, Florida.