Contrasting Medallion Financial (MFIN) & Its Rivals

Medallion Financial (NASDAQ:MFIN) is one of 120 publicly-traded companies in the “Consumer Finance” industry, but how does it contrast to its rivals? We will compare Medallion Financial to related companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Dividends

Medallion Financial pays an annual dividend of $0.56 per share and has a dividend yield of 5.6%. Medallion Financial pays out 50.5% of its earnings in the form of a dividend. As a group, “Consumer Finance” companies pay a dividend yield of 6.2% and pay out 34.2% of their earnings in the form of a dividend. Medallion Financial lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Medallion Financial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medallion Financial	7.53%	5.32%	0.89%
Medallion Financial Competitors	9.92%	-15.66%	2.14%

Analyst Ratings

This is a summary of recent recommendations for Medallion Financial and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medallion Financial	1	5	0	0	1.83
Medallion Financial Competitors	887	3343	5269	274	2.50

Medallion Financial currently has a consensus target price of $12.62, suggesting a potential upside of 26.38%. As a group, “Consumer Finance” companies have a potential upside of 22.14%. Given Medallion Financial’s higher possible upside, research analysts clearly believe Medallion Financial is more favorable than its rivals.

Institutional and Insider Ownership

40.6% of Medallion Financial shares are owned by institutional investors. Comparatively, 46.0% of shares of all “Consumer Finance” companies are owned by institutional investors. 24.6% of Medallion Financial shares are owned by company insiders. Comparatively, 22.1% of shares of all “Consumer Finance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Medallion Financial has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Medallion Financial’s rivals have a beta of 1.26, indicating that their average stock price is 26% more volatile than the S&P 500.

Valuation and Earnings

This table compares Medallion Financial and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Medallion Financial	$353.31 million	$43.04 million	9.00
Medallion Financial Competitors	$3.61 billion	$385.17 million	5.88

Medallion Financial’s rivals have higher revenue and earnings than Medallion Financial. Medallion Financial is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Medallion Financial rivals beat Medallion Financial on 11 of the 15 factors compared.

Medallion Financial Company Profile

Medallion Financial Corp., together with its subsidiaries, operates as a specialty finance company in the United States. It operates in four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Taxi Medallion Lending. The company offers loans that finance consumer purchases of recreational vehicles, boats, and other consumer recreational equipment; consumer financing for window, siding, and roof replacement, swimming pool installations, and other home improvement projects; senior and subordinated loans for the purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and taxi medallion loans to individuals and small to mid-size businesses. It also provides debt, mezzanine, and equity investment capital to companies in various commercial industries; and raises deposits and conducts other banking activities. Medallion Financial Corp. was incorporated in 1995 and is headquartered in New York City, New York.