Reviewing Compass Digital Acquisition (NASDAQ:CDAQ) & CION Investment (NYSE:CION)

Compass Digital Acquisition (NASDAQ:CDAQ) and CION Investment (NYSE:CION) are both small-cap unclassified companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Earnings & Valuation

This table compares Compass Digital Acquisition and CION Investment’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Digital Acquisition	N/A	N/A	N/A	N/A	N/A
CION Investment	$138.48 million	4.59	$95.31 million	$2.44	4.86

CION Investment has higher revenue and earnings than Compass Digital Acquisition.

Volatility and Risk

Compass Digital Acquisition has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, CION Investment has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Compass Digital Acquisition and CION Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Digital Acquisition	0	0	0	0	N/A
CION Investment	0	1	0	0	2.00

CION Investment has a consensus price target of $12.00, indicating a potential upside of 1.27%. Given CION Investment’s higher possible upside, analysts clearly believe CION Investment is more favorable than Compass Digital Acquisition.

Institutional and Insider Ownership

77.4% of Compass Digital Acquisition shares are held by institutional investors. Comparatively, 32.0% of CION Investment shares are held by institutional investors. 29.4% of Compass Digital Acquisition shares are held by company insiders. Comparatively, 0.1% of CION Investment shares are held 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.

Profitability

This table compares Compass Digital Acquisition and CION Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Digital Acquisition	N/A	N/A	N/A
CION Investment	48.50%	12.39%	5.48%

Summary

CION Investment beats Compass Digital Acquisition on 6 of the 8 factors compared between the two stocks.

About Compass Digital Acquisition

Compass Digital Acquisition Corp. 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. The company intends to focus its search on companies in the technology sectors, including in the technology led digital transformation software and services sector. Compass Digital Acquisition Corp. was incorporated in 2021 and is based in Dallas, Texas.

About CION Investment

CION Investment Corporation is a business development company. It specializes in investments in senior secured loans, including unitranche loans, First Lien, second lien loans, long-term subordinated loans, and mezzanine loans; equity interests such as warrants or options; and corporate bonds; and other debt securities in middle-market companies. The firm invests in growth capital, acquisitions, leveraged buyouts, market/product expansion, refinancing and recapitalization. The fund also invests up to 30 percent of their assets opportunistically in other types of investments, including the securities of larger public companies and foreign securities. It also makes investments in the secondary loan market. The fund does not invest in start-up companies, turnaround situations, or companies with speculative business plans. The fund prefers to invest in high tech industries, healthcare, pharmaceuticals, business services, media, chemicals, plastic, rubber, telecommunication, consumer services, advertising, printing and publishing, consumer goods, durables, diversified financials, and other industries. It also invests in homebuilding, restaurants, beverage and tobacco bars, broadcasting, distributors, Non-durable good distribution, food beverage and tobacco, energy, oil gas and consumables fuels, insurance, aerospace and defense, industrial machinery, paper and forest product machinery, information technology, metals and mining, and real estate. It primarily seeks to invest in the United States. The fund seeks to invest between $5 million and $50 million in companies with an EBITDA between $25 million and $75 million with average targeted hold of $25 million. It also purchases minority interests in the form of common or preferred equity in the target companies, typically in conjunction with its debt investments or through a co-investment with a financial sponsor. The fund seeks to exit its investments through an initial public offering of common stock, a merger, a sale, or other recapitalization.