LM Funding America (NASDAQ:LMFA – Get Free Report) and Burke & Herbert Financial Services (NASDAQ:BHRB – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Insider & Institutional Ownership
22.7% of LM Funding America shares are held by institutional investors. 36.1% of LM Funding America shares are held by insiders. Comparatively, 10.9% of Burke & Herbert Financial Services shares are held 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.
Analyst Recommendations
This is a summary of recent ratings and target prices for LM Funding America and Burke & Herbert Financial Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LM Funding America | 0 | 1 | 0 | 0 | 2.00 |
| Burke & Herbert Financial Services | 0 | 0 | 3 | 0 | 3.00 |
Volatility & Risk
LM Funding America has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Burke & Herbert Financial Services has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.
Earnings and Valuation
This table compares LM Funding America and Burke & Herbert Financial Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LM Funding America | $11.00 million | 1.24 | -$7.32 million | ($6.76) | -0.39 |
| Burke & Herbert Financial Services | $402.33 million | 2.37 | $35.71 million | $3.51 | 18.07 |
Burke & Herbert Financial Services has higher revenue and earnings than LM Funding America. LM Funding America is trading at a lower price-to-earnings ratio than Burke & Herbert Financial Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares LM Funding America and Burke & Herbert Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LM Funding America | -184.48% | -46.84% | -38.06% |
| Burke & Herbert Financial Services | 12.02% | 15.20% | 1.40% |
Summary
Burke & Herbert Financial Services beats LM Funding America on 11 of the 14 factors compared between the two stocks.
About LM Funding America
LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.
About Burke & Herbert Financial Services
Burke Herbert Financial Services Corp. is a bank holding company, which engages in the provision of banking products and financial services to small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. It operates through the following loan portfolio segments: Commercial Real Estate, Owner-Occupied Commercial Real Estate, Acquisition, Construction, and Development, Commercial and Industrial, Single Family Residential (1-4 Units), and Consumer Non-Real Estate and Other. The Commercial Real Estate segment includes leasing of the real estate collateral or income generated from the sale of the collateral. The Owner-Occupied Commercial Real Estate segment focuses on the operations of the business that occupies the property and the value of the collateral. The Acquisition, Construction, and Development segment offers creditworthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. The Commercial and Industrial segment is involved in the operations of the business and the value of the collateral. The Single Family Residential (1-4 Units) segment provides loans for investment purpose carry risk associated with the continued creditworthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. The Consumer Non-Real Estate and Other segment covers loans carry risk associated with the creditworthiness of the borrower and the value of the collateral. The company was founded on September 14, 2022 and is headquartered in Alexandria, VA.
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