Critical Survey: Sparta Commercial Services (OTCMKTS:SRCO) and Bridger Aerospace Group (NASDAQ:BAER)

Sparta Commercial Services (OTCMKTS:SRCO) and Bridger Aerospace Group (NASDAQ:BAER) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

48.9% of Bridger Aerospace Group shares are held by institutional investors. 0.5% of Sparta Commercial Services shares are held by company insiders. Comparatively, 76.2% of Bridger Aerospace Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Sparta Commercial Services and Bridger Aerospace Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sparta Commercial Services	$190,000.00	60.08	-$640,000.00	($0.03)	-9.67
Bridger Aerospace Group	$84.14 million	1.13	-$77.36 million	($1.37)	-1.28

Sparta Commercial Services has higher earnings, but lower revenue than Bridger Aerospace Group. Sparta Commercial Services is trading at a lower price-to-earnings ratio than Bridger Aerospace Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Sparta Commercial Services has a beta of -0.7, indicating that its share price is 170% less volatile than the S&P 500. Comparatively, Bridger Aerospace Group has a beta of -0.23, indicating that its share price is 123% less volatile than the S&P 500.

Profitability

This table compares Sparta Commercial Services and Bridger Aerospace Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sparta Commercial Services	-863.09%	N/A	-506.19%
Bridger Aerospace Group	-40.25%	N/A	-12.15%

Analyst Recommendations

This is a summary of current recommendations for Sparta Commercial Services and Bridger Aerospace Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sparta Commercial Services	0	0	0	0	0.00
Bridger Aerospace Group	0	0	2	0	3.00

Bridger Aerospace Group has a consensus price target of $5.75, indicating a potential upside of 226.70%. Given Bridger Aerospace Group’s stronger consensus rating and higher probable upside, analysts clearly believe Bridger Aerospace Group is more favorable than Sparta Commercial Services.

Summary

Bridger Aerospace Group beats Sparta Commercial Services on 10 of the 13 factors compared between the two stocks.

About Sparta Commercial Services

Sparta Commercial Services, Inc. develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for vehicle dealerships, racetracks, private clubs, country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. The company also owns and manages websites, which sell motorcycle, recreational vehicle, and truck title history reports for consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies; and designs, launches, maintains, and hosts websites for businesses, as well as provides text messaging services. In addition, it offers eCommerce, customer relationship management development and integration, search engine optimization, social media marketing, and online reviews website services to its clients. Further, the company provides an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment; and a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is headquartered in New York, New York.

About Bridger Aerospace Group

Bridger Aerospace Group Holdings, Inc. provides aerial wildfire management, relief and suppression, and firefighting services to federal and state government agencies in the United States. It offers fire suppression services, such as direct fire suppression aerial firefighting support services for ground crew to drop large amounts of water quickly and directly on wildfires. The company also provides aerial surveillance services, including fire suppression aircraft over an incident and tactical coordination with the incident commander through its manned and unmanned aircraft. It operates an aircraft fleet of 18 planes. The company was founded in 2014 and is headquartered in Belgrade, Montana.