Financial Review: Medallion Financial (MFIN) and Its Peers

Medallion Financial (NASDAQ:MFIN) is one of 121 public companies in the “Consumer Finance” industry, but how does it contrast to its peers? We will compare Medallion Financial to related businesses based on the strength of its risk, earnings, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Valuation & Earnings

This table compares Medallion Financial and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Medallion Financial	$353.31 million	$43.04 million	7.59
Medallion Financial Competitors	$64.83 billion	$381.70 million	5.91

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

Dividends

Medallion Financial pays an annual dividend of $0.56 per share and has a dividend yield of 5.5%. Medallion Financial pays out 42.1% 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 34.3% of their earnings in the form of a dividend. Medallion Financial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Medallion Financial	9.25%	7.11%	1.20%
Medallion Financial Competitors	10.16%	-15.22%	2.14%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Medallion Financial and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medallion Financial	1	5	0	0	1.83
Medallion Financial Competitors	928	3488	5408	281	2.50

Medallion Financial presently has a consensus target price of $12.62, suggesting a potential upside of 25.00%. As a group, “Consumer Finance” companies have a potential upside of 23.55%. Given Medallion Financial’s higher probable upside, equities analysts plainly believe Medallion Financial is more favorable than its peers.

Institutional & Insider Ownership

40.6% of Medallion Financial shares are owned by institutional investors. Comparatively, 46.4% of shares of all “Consumer Finance” companies are owned by institutional investors. 24.6% of Medallion Financial shares are owned by insiders. Comparatively, 21.8% of shares of all “Consumer Finance” companies 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.

Volatility and Risk

Medallion Financial has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Medallion Financial’s peers have a beta of 1.25, suggesting that their average share price is 25% more volatile than the S&P 500.

Summary

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

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.