Analyzing CaliberCos (NASDAQ:CWD) & CION Investment (NYSE:CION)

CION Investment (NYSE:CION) and CaliberCos (NASDAQ:CWD) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider & Institutional Ownership

32.0% of CION Investment shares are held by institutional investors. Comparatively, 4.1% of CaliberCos shares are held by institutional investors. 0.6% of CION Investment shares are held by insiders. Comparatively, 8.3% of CaliberCos shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares CION Investment and CaliberCos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CION Investment	1.17%	11.95%	4.52%
CaliberCos	-117.34%	-75.44%	-13.87%

Volatility & Risk

CION Investment has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, CaliberCos has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CION Investment and CaliberCos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CION Investment	1	2	0	0	1.67
CaliberCos	1	0	0	0	1.00

CION Investment presently has a consensus price target of $6.50, suggesting a potential upside of 2.77%. Given CION Investment’s stronger consensus rating and higher possible upside, analysts clearly believe CION Investment is more favorable than CaliberCos.

Valuation and Earnings

This table compares CION Investment and CaliberCos”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CION Investment	$240.82 million	1.29	-$20.63 million	$0.06	105.42
CaliberCos	$16.25 million	0.28	-$21.80 million	($3.79)	-0.11

CION Investment has higher revenue and earnings than CaliberCos. CaliberCos is trading at a lower price-to-earnings ratio than CION Investment, indicating that it is currently the more affordable of the two stocks.

Summary

CION Investment beats CaliberCos on 12 of the 13 factors compared between the two stocks.

About CION Investment

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.

About CaliberCos

Caliber (NASDAQ: CWD) is a vertically integrated alternative asset management firm whose purpose is to build generational wealth for investors seeking to access opportunities in middle-market assets. Caliber differentiates itself by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments which are managed by our in-house asset services group. Our funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. Additional information can be found at Caliberco.com and CaliberFunds.co.