Ross Acquisition Corp II (NYSE:ROSS) vs. Trinity Capital (NASDAQ:TRIN) Critical Review

Trinity Capital (NASDAQ:TRIN) and Ross Acquisition Corp II (NYSE:ROSS) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Insider and Institutional Ownership

24.6% of Trinity Capital shares are owned by institutional investors. Comparatively, 27.8% of Ross Acquisition Corp II shares are owned by institutional investors. 6.4% of Trinity Capital shares are owned by company insiders. Comparatively, 76.4% of Ross Acquisition Corp II shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Trinity Capital and Ross Acquisition Corp II”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Capital	$175.49 million	5.15	$76.89 million	$2.06	6.99
Ross Acquisition Corp II	N/A	N/A	$14.87 million	N/A	N/A

Trinity Capital has higher revenue and earnings than Ross Acquisition Corp II.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Trinity Capital and Ross Acquisition Corp II, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Capital	1	1	1	0	2.00
Ross Acquisition Corp II	0	0	0	0	0.00

Trinity Capital presently has a consensus price target of $15.33, suggesting a potential upside of 6.56%. Given Trinity Capital’s stronger consensus rating and higher possible upside, research analysts plainly believe Trinity Capital is more favorable than Ross Acquisition Corp II.

Volatility & Risk

Trinity Capital has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Ross Acquisition Corp II has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500.

Profitability

This table compares Trinity Capital and Ross Acquisition Corp II’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Capital	40.73%	15.90%	7.14%
Ross Acquisition Corp II	N/A	N/A	N/A

Summary

Trinity Capital beats Ross Acquisition Corp II on 9 of the 11 factors compared between the two stocks.

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.

About Ross Acquisition Corp II

Ross Acquisition Corp II 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. Ross Acquisition Corp II was incorporated in 2021 and is based in Palm Beach, Florida.