Critical Survey: Graham (NYSE:GHM) and Revolution Acceleration Acquisition (OTCMKTS:RAACU)

Revolution Acceleration Acquisition (OTCMKTS:RAACU) and Graham (NYSE:GHM) are both manufacturing companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Revolution Acceleration Acquisition and Graham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolution Acceleration Acquisition	N/A	N/A	N/A
Graham	2.46%	4.45%	2.08%

Insider and Institutional Ownership

69.5% of Graham shares are owned by institutional investors. 5.4% of Graham shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Revolution Acceleration Acquisition and Graham, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolution Acceleration Acquisition	0	0	0	0	N/A
Graham	0	0	1	0	3.00

Graham has a consensus price target of $35.00, suggesting a potential upside of 11.50%. Given Graham’s higher probable upside, analysts clearly believe Graham is more favorable than Revolution Acceleration Acquisition.

Earnings and Valuation

This table compares Revolution Acceleration Acquisition and Graham’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolution Acceleration Acquisition	N/A	N/A	N/A	N/A	N/A
Graham	$187.92 million	1.82	$4.56 million	$0.43	73.00

Graham has higher revenue and earnings than Revolution Acceleration Acquisition.

Summary

Graham beats Revolution Acceleration Acquisition on 8 of the 8 factors compared between the two stocks.

About Revolution Acceleration Acquisition

Revolution Acceleration Acquisition Corp does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was formerly known as Acceleration Acquisition Corporation and changed its name to Revolution Acceleration Acquisition Corp in November 2020. Revolution Acceleration Acquisition Corp was incorporated in 2020 and is based in Washington, District of Columbia.

About Graham

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.