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Analyzing Fusion Acquisition Corp. II (NYSE:FSNB) and CION Investment (NYSE:CION)

Defense World ·  Mar 28, 2023 02:26

Fusion Acquisition Corp. II (NYSE:FSNB – Get Rating) and CION Investment (NYSE:CION – Get Rating) are both small-cap unclassified companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Fusion Acquisition Corp. II and CION Investment's revenue, earnings per share and valuation.

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Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fusion Acquisition Corp. II N/A N/A $12.97 million N/A N/A
CION Investment $194.90 million 2.70 $50.14 million $0.89 10.76

CION Investment has higher revenue and earnings than Fusion Acquisition Corp. II.

Risk & Volatility

Fusion Acquisition Corp. II has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, CION Investment has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

72.5% of Fusion Acquisition Corp. II shares are owned by institutional investors. Comparatively, 27.2% of CION Investment shares are owned by institutional investors. 20.0% of Fusion Acquisition Corp. II shares are owned by insiders. Comparatively, 0.3% of CION Investment shares are owned by 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.

Profitability

This table compares Fusion Acquisition Corp. II and CION Investment's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fusion Acquisition Corp. II N/A -62.42% 3.10%
CION Investment 25.73% 9.73% 4.74%

Analyst Ratings

This is a summary of current ratings and recommmendations for Fusion Acquisition Corp. II and CION Investment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion Acquisition Corp. II 0 0 0 0 N/A
CION Investment 0 0 1 0 3.00

CION Investment has a consensus target price of $10.50, suggesting a potential upside of 9.60%. Given CION Investment's higher probable upside, analysts plainly believe CION Investment is more favorable than Fusion Acquisition Corp. II.

Summary

CION Investment beats Fusion Acquisition Corp. II on 8 of the 10 factors compared between the two stocks.

About Fusion Acquisition Corp. II

(Get Rating)

Fusion Acquisition Corp. II 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 intends to acquire businesses in the wealth, financial advice, investment, and asset management sectors, as well as FinTech sector. Fusion Acquisition Corp. II was incorporated in 2021 and is based in New York, New York.

About CION Investment

(Get Rating)

CION Investment Corporation is a business development company. It specializes in investments in senior secured loans, including unitranche loans, First Lien, second lien loans, long-term subordinated loans, and mezzanine loans; equity interests such as warrants or options; and corporate bonds; and other debt securities in middle-market companies. The firm invests in growth capital, acquisitions, leveraged buyouts, market/product expansion, refinancing and recapitalization. The fund also invests up to 30 percent of their assets opportunistically in other types of investments, including the securities of larger public companies and foreign securities. It also makes investments in the secondary loan market. The fund does not invest in start-up companies, turnaround situations, or companies with speculative business plans. The fund prefers to invest in high tech industries, healthcare, pharmaceuticals, business services, media, chemicals, plastic, rubber, telecommunication, consumer services, advertising, printing and publishing, consumer goods, durables, diversified financials, and other industries. It also invests in homebuilding, restaurants, beverage and tobacco bars, broadcasting, distributors, Non-durable good distribution, food beverage and tobacco, energy, oil gas and consumables fuels, insurance, aerospace and defense, industrial machinery, paper and forest product machinery, information technology, metals and mining, and real estate. It primarily seeks to invest in the United States. The fund seeks to invest between $5 million and $50 million in companies with an EBITDA between $25 million and $75 million with average targeted hold of $25 million. It also purchases minority interests in the form of common or preferred equity in the target companies, typically in conjunction with its debt investments or through a co-investment with a financial sponsor. The fund seeks to exit its investments through an initial public offering of common stock, a merger, a sale, or other recapitalization.

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