Financial Analysis: Sound Point Meridian Capital (NYSE:SPMC) versus Perception Capital Corp. III (NASDAQ:PFTA)

Perception Capital Corp. III (NASDAQ:PFTA) and Sound Point Meridian Capital (NYSE:SPMC) are both unclassified companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Perception Capital Corp. III and Sound Point Meridian Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perception Capital Corp. III	0	0	0	0	0.00
Sound Point Meridian Capital	0	0	1	1	3.50

Sound Point Meridian Capital has a consensus price target of $21.75, suggesting a potential upside of 5.48%. Given Sound Point Meridian Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Sound Point Meridian Capital is more favorable than Perception Capital Corp. III.

Valuation & Earnings

This table compares Perception Capital Corp. III and Sound Point Meridian Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perception Capital Corp. III	N/A	N/A	$7.15 million	N/A	N/A
Sound Point Meridian Capital	N/A	N/A	N/A	N/A	N/A

Institutional and Insider Ownership

26.9% of Perception Capital Corp. III shares are owned by institutional investors. 0.4% of Perception Capital Corp. III shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Perception Capital Corp. III and Sound Point Meridian Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perception Capital Corp. III	N/A	-28.86%	-1.35%
Sound Point Meridian Capital	N/A	N/A	N/A

Summary

Sound Point Meridian Capital beats Perception Capital Corp. III on 6 of the 8 factors compared between the two stocks.

About Perception Capital Corp. III

Perception Capital Corp. III 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 or entities in the financial technology or financial services ecosystem. The company was formerly known as Portage Fintech Acquisition Corporation and changed its name to Perception Capital Corp. III in October 2023. The company was incorporated in 2021 and is based in Minneapolis, Minnesota.

About Sound Point Meridian Capital

Sound Point Meridian Capital Inc. is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc. is based in NEW YORK.