Golden Arrow Merger (NASDAQ:GAMC) & Sensient Technologies (NYSE:SXT) Critical Contrast

Golden Arrow Merger (NASDAQ:GAMC) and Sensient Technologies (NYSE:SXT) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

5.5% of Golden Arrow Merger shares are held by institutional investors. Comparatively, 90.9% of Sensient Technologies shares are held by institutional investors. 77.4% of Golden Arrow Merger shares are held by insiders. Comparatively, 1.4% of Sensient Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Golden Arrow Merger has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Sensient Technologies has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Golden Arrow Merger and Sensient Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Arrow Merger	0	0	0	0	N/A
Sensient Technologies	0	0	1	0	3.00

Sensient Technologies has a consensus target price of $85.00, indicating a potential upside of 8.82%. Given Sensient Technologies’ higher possible upside, analysts plainly believe Sensient Technologies is more favorable than Golden Arrow Merger.

Profitability

This table compares Golden Arrow Merger and Sensient Technologies’ 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%
Sensient Technologies	5.83%	11.25%	5.93%

Earnings & Valuation

This table compares Golden Arrow Merger and Sensient Technologies”s gross revenue, earnings per share 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
Sensient Technologies	$1.50 billion	2.20	$93.39 million	$2.15	36.33

Sensient Technologies has higher revenue and earnings than Golden Arrow Merger.

Summary

Sensient Technologies beats Golden Arrow Merger on 9 of the 10 factors compared between the two stocks.

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 Sensient Technologies

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Specialty Markets trade names. Sensient Technologies Corporation was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.