Analyzing AI Transportation Acquisition (NASDAQ:AITR) and Trinity Capital (NASDAQ:TRIN)

Trinity Capital (NASDAQ:TRIN) and AI Transportation Acquisition (NASDAQ:AITR) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Trinity Capital and AI Transportation Acquisition, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Capital	1	1	1	1	2.50
AI Transportation Acquisition	0	0	0	0	0.00

Trinity Capital presently has a consensus target price of $15.13, indicating a potential upside of 4.02%. Given Trinity Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Trinity Capital is more favorable than AI Transportation Acquisition.

Profitability

This table compares Trinity Capital and AI Transportation Acquisition’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%
AI Transportation Acquisition	N/A	N/A	N/A

Valuation and Earnings

This table compares Trinity Capital and AI Transportation Acquisition”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Capital	$190.27 million	4.94	$76.89 million	$2.19	6.64
AI Transportation Acquisition	N/A	N/A	N/A	N/A	N/A

Trinity Capital has higher revenue and earnings than AI Transportation Acquisition.

Institutional and Insider Ownership

24.6% of Trinity Capital shares are held by institutional investors. Comparatively, 81.9% of AI Transportation Acquisition shares are held by institutional investors. 5.3% of Trinity Capital shares are held by company insiders. Comparatively, 22.7% of AI Transportation Acquisition shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Trinity Capital has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, AI Transportation Acquisition has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Summary

Trinity Capital beats AI Transportation Acquisition 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 AI Transportation Acquisition

AI Transportation Acquisition Corp does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. It intends to focus on businesses in the transportation field, including logistics, new energy vehicles, smart parking, on-board chips and AI algorithms, automotive services, and related areas of intelligent transportation. The company was incorporated in 2022 and is based in New York, New York.