Reviewing Fusion Acquisition (NYSE:FUSE) & Blucora (NASDAQ:BCOR)

Fusion Acquisition (NYSE:FUSE) and Blucora (NASDAQ:BCOR) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Insider & Institutional Ownership

58.8% of Fusion Acquisition shares are held by institutional investors. Comparatively, 89.4% of Blucora shares are held by institutional investors. 3.4% of Blucora shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Fusion Acquisition and Blucora, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion Acquisition 0 0 0 0 N/A
Blucora 0 0 3 0 3.00

Blucora has a consensus price target of $21.67, indicating a potential upside of 36.87%. Given Blucora’s higher possible upside, analysts clearly believe Blucora is more favorable than Fusion Acquisition.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fusion Acquisition N/A N/A -$39.27 million N/A N/A
Blucora $754.95 million 1.02 -$342.76 million $0.91 17.40

Fusion Acquisition has higher earnings, but lower revenue than Blucora.

Profitability

This table compares Fusion Acquisition and Blucora’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fusion Acquisition N/A -174.12% -2.48%
Blucora -2.04% 29.83% 9.47%

Summary

Blucora beats Fusion Acquisition on 7 of the 9 factors compared between the two stocks.

Fusion Acquisition Company Profile

Fusion Acquisition Corp. does not have significant operations. It focuses on entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2020 and is based in New York, New York.

Blucora Company Profile

Blucora, Inc. engages in the provision of integrated tax-focused wealth management services and software. It operates through the Wealth Management and Tax Preparation segments. The Wealth Management segment consists of the operations of Avantax, which provides tax-focused wealth management solutions for financial advisors, tax preparers, certified public accounting firms, and its clients. The Tax Preparation segment focuses on digital tax preparation solutions for consumers, small business owners, and tax professionals. The company was founded by Naveen Mahendra Kumar Jain in March 1996 and is headquartered in Dallas, TX.

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