SCI Engineered Materials (OTCMKTS:SCIA) and RMG Acquisition Corp. III (NASDAQ:RMGC) Critical Contrast

RMG Acquisition Corp. III (NASDAQ:RMGC) and SCI Engineered Materials (OTCMKTS:SCIA) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for RMG Acquisition Corp. III and SCI Engineered Materials, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RMG Acquisition Corp. III	0	0	0	0	N/A
SCI Engineered Materials	0	0	0	0	N/A

Earnings and Valuation

This table compares RMG Acquisition Corp. III and SCI Engineered Materials’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RMG Acquisition Corp. III	N/A	N/A	$15.88 million	N/A	N/A
SCI Engineered Materials	$23.47 million	0.91	$1.96 million	$0.43	10.93

RMG Acquisition Corp. III has higher earnings, but lower revenue than SCI Engineered Materials.

Profitability

This table compares RMG Acquisition Corp. III and SCI Engineered Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RMG Acquisition Corp. III	N/A	-35.87%	-1.05%
SCI Engineered Materials	7.86%	21.64%	16.26%

Risk and Volatility

RMG Acquisition Corp. III has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, SCI Engineered Materials has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

5.4% of RMG Acquisition Corp. III shares are held by institutional investors. Comparatively, 6.0% of SCI Engineered Materials shares are held by institutional investors. 92.9% of RMG Acquisition Corp. III shares are held by insiders. Comparatively, 19.7% of SCI Engineered Materials shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

SCI Engineered Materials beats RMG Acquisition Corp. III on 6 of the 8 factors compared between the two stocks.

About RMG Acquisition Corp. III

RMG Acquisition Corp. III 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. RMG Acquisition Corp. III was incorporated in 2020 and is based in Miami Beach, Florida. RMG Acquisition Corp. III operates as a subsidiary of RMG Sponsor III, LLC.

About SCI Engineered Materials

SCI Engineered Materials, Inc. engages in the manufacture and supply of materials for physical vapor deposition thin film applications in the United States. The company offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, solar, flat panel displays, defense, aerospace, and photonics. Its materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. The company serves domestic and multi-national corporations, universities, and research institutions. SCI Engineered Materials, Inc. distributes its products directly, as well as through manufacturers' representatives internationally. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.