NextNav (NASDAQ:NN – Get Rating) and Inflection Point Acquisition (NASDAQ:IPAX – Get Rating) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and target prices for NextNav and Inflection Point Acquisition, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NextNav | 0 | 1 | 1 | 0 | 2.50 |
| Inflection Point Acquisition | 0 | 0 | 1 | 0 | 3.00 |
NextNav presently has a consensus price target of $10.63, indicating a potential upside of 410.82%. Inflection Point Acquisition has a consensus price target of $14.00, indicating a potential upside of ∞. Given Inflection Point Acquisition’s stronger consensus rating and higher possible upside, analysts clearly believe Inflection Point Acquisition is more favorable than NextNav.
Volatility and Risk
Valuation & Earnings
This table compares NextNav and Inflection Point Acquisition’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NextNav | $3.93 million | 56.69 | -$40.12 million | ($0.39) | -5.33 |
| Inflection Point Acquisition | N/A | N/A | -$320,000.00 | N/A | N/A |
Inflection Point Acquisition has lower revenue, but higher earnings than NextNav.
Profitability
This table compares NextNav and Inflection Point Acquisition’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NextNav | -1,021.80% | -55.95% | -44.71% |
| Inflection Point Acquisition | N/A | -53.90% | -0.36% |
Insider & Institutional Ownership
60.7% of NextNav shares are owned by institutional investors. Comparatively, 94.7% of Inflection Point Acquisition shares are owned by institutional investors. 15.7% of NextNav shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Inflection Point Acquisition beats NextNav on 7 of the 10 factors compared between the two stocks.
About NextNav
NextNav Inc. provides next generation global positioning system (GPS) and 3D geolocation services. The company delivers next generation positioning, navigation, and timing solutions through its network-based Pinnacle and TerraPoiNT solutions. Its Pinnacle 3D geolocation service is commercially available in approximately 4,400 cities and towns in the United States; and its TerraPoiNT terrestrial-based encrypted network has deployments in 51 total markets nationally. The company sells its solutions directly to customers or through partners. The company was founded in 2007 and is headquartered in McLean, Virginia.
About Inflection Point Acquisition
Inflection Point 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 in the consumer and technology industries. The company was incorporated in 2021 and is based in New York, New York.
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