Financial Contrast: Medallion Financial (NASDAQ:MFIN) versus Joint Stock Company Kaspi.kz (NASDAQ:KSPI)

Joint Stock Company Kaspi.kz (NASDAQ:KSPI) and Medallion Financial (NASDAQ:MFIN) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Profitability

This table compares Joint Stock Company Kaspi.kz and Medallion Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint Stock Company Kaspi.kz	24.00%	40.69%	9.54%
Medallion Financial	9.25%	7.11%	1.20%

Insider and Institutional Ownership

32.2% of Joint Stock Company Kaspi.kz shares are owned by institutional investors. Comparatively, 40.6% of Medallion Financial shares are owned by institutional investors. 24.6% of Medallion Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Joint Stock Company Kaspi.kz pays an annual dividend of $8.57 per share and has a dividend yield of 9.3%. Medallion Financial pays an annual dividend of $0.56 per share and has a dividend yield of 4.9%. Joint Stock Company Kaspi.kz pays out 78.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medallion Financial pays out 42.1% of its earnings in the form of a dividend.

Volatility & Risk

Joint Stock Company Kaspi.kz has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Medallion Financial has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Joint Stock Company Kaspi.kz and Medallion Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint Stock Company Kaspi.kz	0	3	1	0	2.25
Medallion Financial	1	4	0	0	1.80

Joint Stock Company Kaspi.kz presently has a consensus target price of $107.50, indicating a potential upside of 17.18%. Medallion Financial has a consensus target price of $12.62, indicating a potential upside of 10.55%. Given Joint Stock Company Kaspi.kz’s stronger consensus rating and higher probable upside, research analysts plainly believe Joint Stock Company Kaspi.kz is more favorable than Medallion Financial.

Earnings & Valuation

This table compares Joint Stock Company Kaspi.kz and Medallion Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joint Stock Company Kaspi.kz	$4,403.33 billion	0.00	$2.04 billion	$10.98	8.36
Medallion Financial	$353.31 million	0.74	$43.04 million	$1.33	8.59

Joint Stock Company Kaspi.kz has higher revenue and earnings than Medallion Financial. Joint Stock Company Kaspi.kz is trading at a lower price-to-earnings ratio than Medallion Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Joint Stock Company Kaspi.kz beats Medallion Financial on 11 of the 16 factors compared between the two stocks.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.

About Medallion Financial

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.