Financial Survey: REX American Resources (NYSE:REX) & Golden Arrow Merger (NASDAQ:GAMC)

REX American Resources (NYSE:REX) and Golden Arrow Merger (NASDAQ:GAMC) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for REX American Resources and Golden Arrow Merger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REX American Resources	0	0	1	0	3.00
Golden Arrow Merger	0	0	0	0	N/A

REX American Resources currently has a consensus target price of $65.00, indicating a potential upside of 46.73%. Given REX American Resources’ higher possible upside, analysts plainly believe REX American Resources is more favorable than Golden Arrow Merger.

Earnings & Valuation

This table compares REX American Resources and Golden Arrow Merger’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REX American Resources	$833.38 million	0.93	$60.94 million	$3.75	11.81
Golden Arrow Merger	N/A	N/A	-$1.47 million	N/A	N/A

REX American Resources has higher revenue and earnings than Golden Arrow Merger.

Profitability

This table compares REX American Resources and Golden Arrow Merger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REX American Resources	8.43%	11.53%	10.31%
Golden Arrow Merger	N/A	-22.43%	-24.61%

Institutional & Insider Ownership

88.1% of REX American Resources shares are held by institutional investors. Comparatively, 5.5% of Golden Arrow Merger shares are held by institutional investors. 11.7% of REX American Resources shares are held by company insiders. Comparatively, 77.4% of Golden Arrow Merger shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

REX American Resources has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Golden Arrow Merger has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.

Summary

REX American Resources beats Golden Arrow Merger on 9 of the 10 factors compared between the two stocks.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.

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.