Reviewing Mill City Ventures III (NASDAQ:MCVT) & Nicholas Financial (NASDAQ:NICK)

Mill City Ventures III (NASDAQ:MCVT) and Nicholas Financial (NASDAQ:NICK) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Mill City Ventures III and Nicholas Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mill City Ventures III	0	0	0	0	N/A
Nicholas Financial	0	0	0	0	N/A

Earnings and Valuation

This table compares Mill City Ventures III and Nicholas Financial’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mill City Ventures III	$2.85 million	6.43	$110,000.00	N/A	N/A
Nicholas Financial	$44.34 million	1.36	-$34.12 million	($4.26)	-1.12

Mill City Ventures III has higher earnings, but lower revenue than Nicholas Financial.

Profitability

This table compares Mill City Ventures III and Nicholas Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mill City Ventures III	-39.37%	-6.67%	-6.13%
Nicholas Financial	-76.69%	-33.68%	-23.32%

Institutional and Insider Ownership

5.1% of Mill City Ventures III shares are owned by institutional investors. Comparatively, 38.8% of Nicholas Financial shares are owned by institutional investors. 16.0% of Mill City Ventures III shares are owned by insiders. Comparatively, 43.0% of Nicholas Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Mill City Ventures III beats Nicholas Financial on 5 of the 8 factors compared between the two stocks.

About Mill City Ventures III

Mill City Ventures III, Ltd. is a principal investment firm specializing investments in debt and equity securities of public and private companies to fund their operations whether its start-up, acquisition, or growth. It primarily focuses on investing in, lending to, and making managerial assistance available to privately held and publicly traded companies. The firm also advises its portfolio companies with regard to finance and operations. It was formerly known as Poker Magic, Inc. Mill City Ventures III, Ltd. was founded in January, 2006 and is based in Wayzata, Minnesota.

About Nicholas Financial

Nicholas Financial, Inc. operates as a consumer finance company in the United States. The company engages in acquiring and servicing automobile finance installment contracts for the purchase of new and used automobiles and light trucks. It also originates direct consumer loans and sells consumer-finance related products. The company operates branch offices located in Alabama, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Michigan, Missouri, Nevada, North Carolina, Nevada, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, and Wisconsin. Nicholas Financial, Inc. was founded in 1985 and is headquartered in Clearwater, Florida.