Contrasting Kodiak AI (NASDAQ:KDK) & HCM II Acquisition (NASDAQ:IMSR)

HCM II Acquisition (NASDAQ:IMSR) and Kodiak AI (NASDAQ:KDK) are both small-cap financial services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Valuation and Earnings

This table compares HCM II Acquisition and Kodiak AI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HCM II Acquisition	$123,320.00	2,724.66	$3.41 million	N/A	N/A
Kodiak AI	N/A	N/A	$25.99 million	($0.34)	-29.26

Kodiak AI has lower revenue, but higher earnings than HCM II Acquisition.

Risk and Volatility

HCM II Acquisition has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Kodiak AI has a beta of -0.41, indicating that its share price is 141% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for HCM II Acquisition and Kodiak AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HCM II Acquisition	1	0	1	0	2.00
Kodiak AI	1	1	4	1	2.71

HCM II Acquisition presently has a consensus target price of $12.00, suggesting a potential upside of 2.65%. Kodiak AI has a consensus target price of $15.90, suggesting a potential upside of 59.80%. Given Kodiak AI’s stronger consensus rating and higher probable upside, analysts plainly believe Kodiak AI is more favorable than HCM II Acquisition.

Profitability

This table compares HCM II Acquisition and Kodiak AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HCM II Acquisition	N/A	N/A	N/A
Kodiak AI	N/A	-70.69%	-5.32%

Insider and Institutional Ownership

73.0% of Kodiak AI shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Kodiak AI beats HCM II Acquisition on 6 of the 10 factors compared between the two stocks.

About HCM II Acquisition

Terrestrial Energy Inc. produces carbon free nuclear energy in North Carolina and internationally. The company was founded in 2013 and is headquartered in Charlotte, North Carolina.

About Kodiak AI

We are a blank check company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, which we refer to as our initial business combination. Our only activities since inception have been organizational activities and those necessary to prepare for this offering. We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target. Our team has a history of executing transactions in multiple geographies and under varying economic and financial market conditions. Although we may pursue an acquisition in a number of industries or geographies, we intend to capitalize on the broader Ares platform where we believe a combination of our relationships, knowledge and experience across industries can effect a positive transformation or augmentation of an existing business. Our sponsor is an affiliate of Ares, a leading global alternative investment adviser. Given Ares’ investment capabilities, we believe our team has the required investment, operational, due diligence and capital raising resources to effect a business combination with an attractive target and to position it for long-term success in the public markets. While we may pursue an initial business combination target in any industry or sector, geography, or stage of its corporate evolution, we intend to focus our search in North America, Europe or Asia. We will pursue an initial business combination with an established business with scale, attractive growth prospects and sustainable competitive advantages. We believe there is a large universe of such businesses that could benefit from a public listing, and that we will be able to offer a differentiated and compelling value proposition to them. Our executive offices are located at 245 Park Avenue, 44th Floor, New York, New York.