Comparing Provident Acquisition (NASDAQ:PAQC) and Leafly (NASDAQ:LFLY)

Provident Acquisition (NASDAQ:PAQCGet Rating) and Leafly (NASDAQ:LFLYGet Rating) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares Provident Acquisition and Leafly’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provident Acquisition N/A -52.57% 3.78%
Leafly 12.03% N/A -35.79%

Volatility & Risk

Provident Acquisition has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500. Comparatively, Leafly has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Valuation & Earnings

This table compares Provident Acquisition and Leafly’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provident Acquisition N/A N/A $10.60 million $0.26 42.31
Leafly $43.04 million 0.61 -$5.70 million $0.06 10.90

Provident Acquisition has higher earnings, but lower revenue than Leafly. Leafly is trading at a lower price-to-earnings ratio than Provident Acquisition, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Provident Acquisition and Leafly, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Acquisition 0 0 0 0 N/A
Leafly 0 1 2 0 2.67

Leafly has a consensus price target of $4.83, indicating a potential upside of 639.04%. Given Leafly’s higher possible upside, analysts clearly believe Leafly is more favorable than Provident Acquisition.

Insider and Institutional Ownership

58.2% of Provident Acquisition shares are held by institutional investors. Comparatively, 22.9% of Leafly shares are held by institutional investors. 21.8% of Leafly shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Leafly beats Provident Acquisition on 7 of the 12 factors compared between the two stocks.

About Provident Acquisition

(Get Rating)

Provident Acquisition Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2020 and is based in Central, Hong Kong.

About Leafly

(Get Rating)

Leafly Holdings, Inc. owns and operates a platform to provide consumers with cannabis information and connects consumers to cannabis brands and licensed retailers. It offers subscription-based marketplace listings, digital advertising solutions, and software as a service-based tools to cannabis retailers and brands; and information, reviews, menus, and ordering and delivery options to its audience through its website and mobile applications. The company was founded in 2010 and is headquartered in Seattle, Washington.

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