Critical Contrast: Trinity Capital (NASDAQ:TRIN) versus Quantum FinTech Acquisition (NYSE:QFTA)

Trinity Capital (NASDAQ:TRIN) and Quantum FinTech Acquisition (NYSE:QFTA) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

24.6% of Trinity Capital shares are held by institutional investors. Comparatively, 30.5% of Quantum FinTech Acquisition shares are held by institutional investors. 6.4% of Trinity Capital shares are held by company insiders. Comparatively, 2.4% of Quantum FinTech Acquisition shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Trinity Capital and Quantum FinTech Acquisition’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Capital	$181.85 million	4.06	$76.89 million	$1.61	8.60
Quantum FinTech Acquisition	N/A	N/A	$11.05 million	N/A	N/A

Trinity Capital has higher revenue and earnings than Quantum FinTech Acquisition.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trinity Capital	40.06%	16.14%	7.47%
Quantum FinTech Acquisition	N/A	-8.86%	0.75%

Analyst Ratings

This is a summary of current ratings and price targets for Trinity Capital and Quantum FinTech Acquisition, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Capital	0	0	2	0	3.00
Quantum FinTech Acquisition	0	0	0	0	N/A

Trinity Capital presently has a consensus target price of $16.25, suggesting a potential upside of 17.41%. Given Trinity Capital’s higher possible upside, equities research analysts clearly believe Trinity Capital is more favorable than Quantum FinTech Acquisition.

Risk and Volatility

Trinity Capital has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Quantum FinTech Acquisition has a beta of -0.3, suggesting that its share price is 130% less volatile than the S&P 500.

Summary

Trinity Capital beats Quantum FinTech Acquisition on 9 of the 10 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 Quantum FinTech Acquisition

Quantum FinTech Acquisition Corporation does not have significant operations. It intends to effect a merger, capital share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in Tampa, Florida.