Head-To-Head Comparison: Medallion Financial (NASDAQ:MFIN) versus Stronghold Digital Mining (NASDAQ:SDIG)

Medallion Financial (NASDAQ:MFIN) and Stronghold Digital Mining (NASDAQ:SDIG) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

40.6% of Medallion Financial shares are held by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are held by institutional investors. 22.4% of Medallion Financial shares are held by company insiders. Comparatively, 21.1% of Stronghold Digital Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Medallion Financial and Stronghold Digital Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medallion Financial	13.72%	9.52%	1.48%
Stronghold Digital Mining	-11.21%	13.67%	3.59%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Medallion Financial and Stronghold Digital Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medallion Financial	0	0	0	0	0.00
Stronghold Digital Mining	0	1	1	1	3.00

Stronghold Digital Mining has a consensus price target of $6.17, suggesting a potential upside of 95.77%. Given Stronghold Digital Mining’s stronger consensus rating and higher probable upside, analysts clearly believe Stronghold Digital Mining is more favorable than Medallion Financial.

Earnings & Valuation

This table compares Medallion Financial and Stronghold Digital Mining”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medallion Financial	$262.36 million	0.76	$55.08 million	$1.69	5.09
Stronghold Digital Mining	$74.97 million	0.72	-$71.40 million	($3.70)	-0.85

Medallion Financial has higher revenue and earnings than Stronghold Digital Mining. Stronghold Digital Mining is trading at a lower price-to-earnings ratio than Medallion Financial, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Medallion Financial has a beta of 2.07, suggesting that its share price is 107% more volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 2.99, suggesting that its share price is 199% more volatile than the S&P 500.

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.

About Stronghold Digital Mining

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.