Reviewing Medallion Financial (NASDAQ:MFIN) and Dave (NASDAQ:DAVE)

Medallion Financial (NASDAQ:MFIN) and Dave (NASDAQ:DAVE) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Risk and Volatility

Medallion Financial has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Dave has a beta of 3.92, suggesting that its share price is 292% more volatile than the S&P 500.

Valuation & Earnings

This table compares Medallion Financial and Dave”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medallion Financial	$353.31 million	0.73	$43.04 million	$1.33	8.47
Dave	$643.65 million	7.09	$195.87 million	$15.42	23.19

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

Profitability

This table compares Medallion Financial and Dave’s 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%
Dave	34.58%	77.46%	40.44%

Insider & Institutional Ownership

40.6% of Medallion Financial shares are owned by institutional investors. Comparatively, 18.0% of Dave shares are owned by institutional investors. 24.6% of Medallion Financial shares are owned by company insiders. Comparatively, 23.6% of Dave shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Medallion Financial and Dave, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medallion Financial	1	4	0	0	1.80
Dave	0	3	14	0	2.82

Medallion Financial currently has a consensus price target of $12.62, suggesting a potential upside of 12.03%. Dave has a consensus price target of $433.25, suggesting a potential upside of 21.17%. Given Dave’s stronger consensus rating and higher probable upside, analysts clearly believe Dave is more favorable than Medallion Financial.

Summary

Dave beats Medallion Financial on 12 of the 14 factors compared between the two stocks.

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 Dave

Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.