GCM Grosvenor (NASDAQ:GCMG) & East Resources Acquisition (NASDAQ:ERES) Critical Comparison

East Resources Acquisition (NASDAQ:ERES) and GCM Grosvenor (NASDAQ:GCMG) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares East Resources Acquisition and GCM Grosvenor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
East Resources Acquisition	N/A	N/A	-7.08%
GCM Grosvenor	2.50%	-83.70%	14.94%

Valuation and Earnings

This table compares East Resources Acquisition and GCM Grosvenor’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
East Resources Acquisition	N/A	N/A	-$640,000.00	N/A	N/A
GCM Grosvenor	$446.53 million	3.28	$19.82 million	($0.26)	-30.31

GCM Grosvenor has higher revenue and earnings than East Resources Acquisition.

Insider & Institutional Ownership

18.5% of East Resources Acquisition shares are owned by institutional investors. Comparatively, 21.6% of GCM Grosvenor shares are owned by institutional investors. 47.0% of East Resources Acquisition shares are owned by company insiders. Comparatively, 77.7% of GCM Grosvenor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

East Resources Acquisition has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, GCM Grosvenor has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for East Resources Acquisition and GCM Grosvenor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
East Resources Acquisition	0	0	0	0	N/A
GCM Grosvenor	0	1	3	0	2.75

GCM Grosvenor has a consensus target price of $10.38, indicating a potential upside of 31.66%. Given GCM Grosvenor’s higher possible upside, analysts clearly believe GCM Grosvenor is more favorable than East Resources Acquisition.

Summary

GCM Grosvenor beats East Resources Acquisition on 9 of the 10 factors compared between the two stocks.

About East Resources Acquisition

East Resources Acquisition Company does not have significant operations. The company focuses on effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to identify business opportunities in the field of energy in North America. The company was incorporated in 2020 and is headquartered in Boca Raton, Florida.

About GCM Grosvenor

Grosvenor Capital Management, L.P. is headquartered in United States.