Financial Review: Global Star Acquisition (NASDAQ:GLST) and Trinity Capital (NASDAQ:TRIN)

Global Star Acquisition (NASDAQ:GLST) and Trinity Capital (NASDAQ:TRIN) are both small-cap unclassified companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Valuation & Earnings

This table compares Global Star Acquisition and Trinity Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Star Acquisition	N/A	N/A	N/A	N/A	N/A
Trinity Capital	$181.85 million	4.75	$76.89 million	$1.71	8.58

Trinity Capital has higher revenue and earnings than Global Star Acquisition.

Analyst Ratings

This is a summary of recent ratings and price targets for Global Star Acquisition and Trinity Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Star Acquisition	0	0	0	0	0.00
Trinity Capital	0	1	2	0	2.67

Trinity Capital has a consensus target price of $15.17, suggesting a potential upside of 3.39%. Given Trinity Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Trinity Capital is more favorable than Global Star Acquisition.

Insider & Institutional Ownership

62.2% of Global Star Acquisition shares are owned by institutional investors. Comparatively, 24.6% of Trinity Capital shares are owned by institutional investors. 65.1% of Global Star Acquisition shares are owned by insiders. Comparatively, 6.4% of Trinity Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Global Star Acquisition and Trinity Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Star Acquisition	N/A	N/A	N/A
Trinity Capital	40.73%	15.90%	7.14%

Volatility & Risk

Global Star Acquisition has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500. Comparatively, Trinity Capital has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Summary

Trinity Capital beats Global Star Acquisition on 8 of the 10 factors compared between the two stocks.

About Global Star Acquisition

Global Star Acquisition, Inc. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2019 and is based in McLean, Virginia.

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.