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Analyzing Gores Holdings VIII (NASDAQ:GIIX) and Braskem (NYSE:BAK)

Financial News Live ·  Jan 14, 2023 07:21

Braskem (NYSE:BAK – Get Rating) and Gores Holdings VIII (NASDAQ:GIIX – Get Rating) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

0.0% of Braskem shares are held by institutional investors. Comparatively, 70.1% of Gores Holdings VIII shares are held by institutional investors. 0.0% of Braskem shares are held by insiders. Comparatively, 20.0% of Gores Holdings VIII shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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Analyst Ratings

This is a summary of current ratings and target prices for Braskem and Gores Holdings VIII, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Braskem 1 4 2 0 2.14
Gores Holdings VIII 0 0 0 0 N/A
Braskem currently has a consensus price target of $22.00, suggesting a potential upside of 137.58%. Given Braskem's higher probable upside, equities analysts plainly believe Braskem is more favorable than Gores Holdings VIII.

Valuation & Earnings

This table compares Braskem and Gores Holdings VIII's top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Braskem $19.58 billion 0.21 $2.59 billion $0.86 10.77
Gores Holdings VIII N/A N/A -$8.68 million N/A N/A

Braskem has higher revenue and earnings than Gores Holdings VIII.

Volatility & Risk

Braskem has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, Gores Holdings VIII has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.

Profitability

This table compares Braskem and Gores Holdings VIII's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Braskem 1.69% 0.07% 0.01%
Gores Holdings VIII N/A -1.20% -1.04%

Summary

Braskem beats Gores Holdings VIII on 8 of the 10 factors compared between the two stocks.

About Braskem

(Get Rating)

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells chemicals, including ethylene, polymer and chemical grade propylene, butadiene, butene-1, benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also produces and sells polyethylene (PE) and polypropylene (PP); supplies electricity and other inputs to second-generation producers; produces and sells of PE, including the production of green PE from renewable resources; and produces and sells polyvinyl chloride and caustic soda. The United States and Europe segment produces and sells PP in the United States and Germany. The Mexico segment produces and sells ethylene, high-density PE, and low-density PE in Mexico. It also manufactures, sells, imports, and exports chemicals, petrochemicals, and fules; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in Camaçari, Brazil.

About Gores Holdings VIII

(Get Rating)

Gores Holdings VIII, Inc. focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to focus on businesses in the industrials, technology, telecommunications, media and entertainment, business services, healthcare, and consumer products. The company was founded in 2020 and is based in Boulder, Colorado.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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