Dave (NASDAQ:DAVE – Get Free Report) and Medallion Financial (NASDAQ:MFIN – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
Institutional & Insider Ownership
18.0% of Dave shares are owned by institutional investors. Comparatively, 40.6% of Medallion Financial shares are owned by institutional investors. 23.6% of Dave shares are owned by company insiders. Comparatively, 24.6% of Medallion Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Dave has a beta of 3.92, suggesting that its share price is 292% more volatile than the S&P 500. Comparatively, Medallion Financial has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Dave | 34.58% | 77.46% | 40.44% |
| Medallion Financial | 9.25% | 7.11% | 1.20% |
Analyst Ratings
This is a summary of current ratings and target prices for Dave and Medallion Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dave | 0 | 3 | 14 | 0 | 2.82 |
| Medallion Financial | 1 | 4 | 0 | 0 | 1.80 |
Dave currently has a consensus price target of $433.25, indicating a potential upside of 21.17%. Medallion Financial has a consensus price target of $12.62, indicating a potential upside of 12.03%. Given Dave’s stronger consensus rating and higher probable upside, equities analysts clearly believe Dave is more favorable than Medallion Financial.
Earnings & Valuation
This table compares Dave and Medallion Financial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dave | $643.65 million | 7.09 | $195.87 million | $15.42 | 23.19 |
| Medallion Financial | $353.31 million | 0.73 | $43.04 million | $1.33 | 8.47 |
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.
Summary
Dave beats Medallion Financial on 12 of the 14 factors compared between the two stocks.
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.
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.
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