Global Star Acquisition (NASDAQ:GLST) versus Trinity Capital (NASDAQ:TRIN) Critical Analysis

Global Star Acquisition (NASDAQ:GLST) and Trinity Capital (NASDAQ:TRIN) are both small-cap unclassified companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Global Star Acquisition has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Trinity Capital has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Global Star Acquisition and Trinity Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Star Acquisition	0	0	0	0	0.00
Trinity Capital	0	1	2	0	2.67

Trinity Capital has a consensus target price of $15.17, indicating a potential upside of 4.74%. Given Trinity Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Trinity Capital is more favorable than Global Star Acquisition.

Profitability

This table compares Global Star Acquisition and Trinity Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Star Acquisition	N/A	N/A	N/A
Trinity Capital	40.73%	15.90%	7.14%

Valuation & Earnings

This table compares Global Star Acquisition and Trinity Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Star Acquisition	N/A	N/A	N/A	N/A	N/A
Trinity Capital	$142.47 million	5.99	$76.89 million	$1.71	8.47

Trinity Capital has higher revenue and earnings than Global Star Acquisition.

Institutional & Insider Ownership

62.2% of Global Star Acquisition shares are held by institutional investors. Comparatively, 24.6% of Trinity Capital shares are held by institutional investors. 65.1% of Global Star Acquisition shares are held by company insiders. Comparatively, 6.4% of Trinity Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Trinity Capital beats Global Star Acquisition on 8 of the 10 factors compared between the two stocks.

About Global Star Acquisition

Global Star Acquisition, Inc. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2019 and is based in McLean, Virginia.

About Trinity Capital

Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix, Arizona with additional offices in the United States.