Easterly Acquisition (NASDAQ:EACQ) and Medallion Financial (NASDAQ:MFIN) are both small-cap unclassified companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares Easterly Acquisition and Medallion Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Easterly Acquisition N/A 53.16% 1.75%
Medallion Financial -34.18% -9.06% -2.34%

Institutional & Insider Ownership

60.2% of Easterly Acquisition shares are owned by institutional investors. Comparatively, 19.0% of Medallion Financial shares are owned by institutional investors. 25.0% of Easterly Acquisition shares are owned by insiders. Comparatively, 16.7% of Medallion Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Easterly Acquisition has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, Medallion Financial has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Easterly Acquisition and Medallion Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Easterly Acquisition 0 0 0 0 N/A
Medallion Financial 0 1 2 0 2.67

Medallion Financial has a consensus target price of $8.33, suggesting a potential upside of 41.00%. Given Medallion Financial’s higher probable upside, analysts plainly believe Medallion Financial is more favorable than Easterly Acquisition.

Valuation and Earnings

This table compares Easterly Acquisition and Medallion Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Easterly Acquisition N/A N/A -$240,000.00 N/A N/A
Medallion Financial $19.71 million 7.33 -$7.12 million $0.31 19.06

Easterly Acquisition has higher earnings, but lower revenue than Medallion Financial.

Summary

Easterly Acquisition beats Medallion Financial on 6 of the 10 factors compared between the two stocks.

Easterly Acquisition Company Profile

Easterly Acquisition Corp. does not have significant operations. It intends to engage in a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with companies operating in the financial services industry. The company was founded in 2015 and is based in New York, New York.

Medallion Financial Company Profile

Medallion Financial Corp., through with its subsidiaries, operates as a specialty finance company in the United States. It originates, acquires, and services loans that finance taxicab medallions and various types of commercial businesses. The company offers consumer loans for the purchase of recreational vehicles, boats, motorcycles, and trailers, as well as to finance small scale home improvements; and commercial loans for the purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business. It also provides secured mezzanine loans to businesses in various industries, including manufacturing, and various service providers; and asset based loans. In addition, the company offers other secured commercial loans to various businesses comprising retail trade and various service providers; and other debt, mezzanine, and equity investment capital to companies in various industries. Further, it raises deposits and conducts other banking activities. Medallion Financial Corp. was founded in 1995 and is headquartered in New York City, New York.

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