Medallion Financial (NASDAQ:MFIN – Get Rating) and Far Peak Acquisition (NASDAQ:FPAC – Get Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Insider & Institutional Ownership
27.9% of Medallion Financial shares are owned by institutional investors. Comparatively, 77.0% of Far Peak Acquisition shares are owned by institutional investors. 18.4% of Medallion Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Medallion Financial and Far Peak Acquisition, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Far Peak Acquisition||0||0||0||0||N/A|
Medallion Financial currently has a consensus target price of $12.00, indicating a potential upside of 50.75%. Given Medallion Financial’s higher possible upside, equities research analysts plainly believe Medallion Financial is more favorable than Far Peak Acquisition.
Volatility & Risk
Medallion Financial has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Far Peak Acquisition has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Valuation and Earnings
This table compares Medallion Financial and Far Peak Acquisition’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Medallion Financial||$190.53 million||1.07||$54.11 million||$2.22||3.59|
|Far Peak Acquisition||N/A||N/A||-$4.70 million||N/A||N/A|
Medallion Financial has higher revenue and earnings than Far Peak Acquisition.
This table compares Medallion Financial and Far Peak Acquisition’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Far Peak Acquisition||N/A||N/A||-3.78%|
Medallion Financial beats Far Peak Acquisition on 8 of the 9 factors compared between the two stocks.
Medallion Financial Company Profile (Get Rating)
Medallion Financial Corp., together with its subsidiaries, operates as a finance company in the United States. The company operates through four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Medallion Lending. It provides loans that finance consumer purchases of recreational vehicles, boats, and trailers; consumer home improvements; commercial businesses; and taxi medallions to individuals, and small to mid-size businesses. The company also offers commercial loans for purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and medallion loans. In addition, it provides debt, mezzanine, and equity investment capital to companies in various 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.
Far Peak Acquisition Company Profile (Get Rating)
Far Peak Acquisition Corporation does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities in the financial technology, technology, or financial services industries. The company was incorporated in 2020 and is based in New York, New York.
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