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RCG vs ZSTK

RCG
RENN Fund, Inc.
BEARISH
Price
$2.78
Market Cap
$19.5M
Sector
Financial Services
AI Confidence
85%
ZSTK
ZeroStack Corp.
BEARISH
Price
$7.41
Market Cap
$18.0M
Sector
Financial Services
AI Confidence
95%

Valuation

P/E Ratio
RCG
25.27
ZSTK
--
Forward P/E
RCG
--
ZSTK
--
P/B Ratio
RCG
0.98
ZSTK
0.11
P/S Ratio
RCG
59.56
ZSTK
0.5
EV/EBITDA
RCG
--
ZSTK
-6.02

Profitability

Gross Margin
RCG
100.0%
ZSTK
4.62%
Operating Margin
RCG
-39.89%
ZSTK
-54.78%
Profit Margin
RCG
242.44%
ZSTK
0.0%
ROE
RCG
4.07%
ZSTK
-307.51%
ROA
RCG
0.05%
ZSTK
-9.28%

Growth

Revenue Growth
RCG
-46.2%
ZSTK
22.3%
Earnings Growth
RCG
-79.4%
ZSTK
--

Financial Health

Debt/Equity
RCG
--
ZSTK
0.76
Current Ratio
RCG
0.4
ZSTK
1.01
Quick Ratio
RCG
0.2
ZSTK
0.74

Dividends

Dividend Yield
RCG
0.77%
ZSTK
--
Payout Ratio
RCG
19.5%
ZSTK
0.0%

AI Verdict

RCG BEARISH

RCG exhibits significant financial instability characterized by a Piotroski F-Score of 4/9 and a critical liquidity shortage with a current ratio of 0.40. While the stock trades near its Graham Number ($2.65), it is priced substantially above its growth-based intrinsic value of $0.77. Severe contractions in both revenue (-46.20%) and earnings (-79.40%) suggest a deteriorating business model. The combination of a 0/100 technical trend and poor liquidity makes this a high-risk profile.

Strengths
Price/Book ratio of 0.98 indicates the stock is trading near its accounting book value
P/E ratio (25.27) is lower than the financial services sector average (35.18)
Low dividend payout ratio (19.50%) suggests the current small dividend is covered by earnings
Risks
Severe liquidity risk with a Current Ratio of 0.40 and Quick Ratio of 0.20
Catastrophic earnings collapse with YoY growth at -79.40%
Significant revenue decline of -46.20% YoY
ZSTK BEARISH

ZSTK exhibits critical financial distress, highlighted by a Piotroski F-Score of 1/9, indicating severe fundamental weakness. The company is experiencing catastrophic capital erosion with an ROE of -307.51% and a consistent pattern of massive earnings misses, most recently reporting an actual EPS of -$34.29 against an estimate of -$0.39. Despite a low Price-to-Book ratio of 0.11, the stock is a classic value trap given its negative operating margins and a 5-year price collapse of 99.8%. The lack of liquidity (Quick Ratio 0.74) and bearish technical trend suggest a high probability of further decline or insolvency.

Strengths
Positive Year-over-Year revenue growth of 22.30%
Extremely low Price-to-Book ratio (0.11)
Low Price-to-Sales ratio (0.50)
Risks
Extreme bankruptcy risk indicated by Piotroski F-Score of 1/9
Catastrophic profitability with ROE at -307.51% and Operating Margin at -54.78%
Severe earnings volatility and consistent, massive misses on EPS estimates

Compare Another Pair

RCG vs ZSTK: Head-to-Head Comparison

This page compares RENN Fund, Inc. (RCG) and ZeroStack Corp. (ZSTK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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