Financial Analysis: Golden Arrow Merger (NASDAQ:GAMC) and LanzaTech Global (NASDAQ:LNZA)

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

Insider and Institutional Ownership

5.5% of Golden Arrow Merger shares are owned by institutional investors. Comparatively, 17.8% of LanzaTech Global shares are owned by institutional investors. 77.4% of Golden Arrow Merger shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Golden Arrow Merger and LanzaTech Global, 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
LanzaTech Global	0	1	3	0	2.75

LanzaTech Global has a consensus price target of $6.33, indicating a potential upside of 263.98%. Given LanzaTech Global’s higher possible upside, analysts clearly believe LanzaTech Global is more favorable than Golden Arrow Merger.

Valuation and Earnings

This table compares Golden Arrow Merger and LanzaTech Global”s top-line revenue, earnings per share (EPS) 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
LanzaTech Global	$67.69 million	5.08	-$134.10 million	($0.49)	-3.55

Golden Arrow Merger has higher earnings, but lower revenue than LanzaTech Global.

Profitability

This table compares Golden Arrow Merger and LanzaTech Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Arrow Merger	N/A	N/A	-24.61%
LanzaTech Global	-143.76%	-96.75%	-42.57%

Risk & Volatility

Golden Arrow Merger has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, LanzaTech Global has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

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 LanzaTech Global

LanzaTech Global, Inc. operates as a nature-based carbon refining company in the United States and internationally. The company transforms waste carbon into the chemical building blocks for consumer goods, such as sustainable fuels, fabrics, and packaging. It is also developing biocatalysts and processes to produce a suite of additional products utilizing novel biocatalysts, including acetone and isopropanol (IPA) and industrial solvents used in various applications, including production of polymers from IPA. LanzaTech Global, Inc. was founded in 2005 and is headquartered in Skokie, Illinois.