Medallion Financial (MFIN) vs. Mr. Cooper Group (COOP) Critical Contrast

Medallion Financial (NASDAQ:MFIN) and Mr. Cooper Group (NASDAQ:COOP) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

15.5% of Medallion Financial shares are owned by institutional investors. Comparatively, 90.0% of Mr. Cooper Group shares are owned by institutional investors. 16.7% of Medallion Financial shares are owned by insiders. Comparatively, 0.9% of Mr. Cooper Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Medallion Financial has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, Mr. Cooper Group has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Medallion Financial and Mr. Cooper Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medallion Financial 0 0 3 0 3.00
Mr. Cooper Group 1 1 2 0 2.25

Medallion Financial presently has a consensus target price of $10.67, suggesting a potential upside of 37.46%. Mr. Cooper Group has a consensus target price of $17.50, suggesting a potential upside of 82.67%. Given Mr. Cooper Group’s higher probable upside, analysts plainly believe Mr. Cooper Group is more favorable than Medallion Financial.

Profitability

This table compares Medallion Financial and Mr. Cooper Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medallion Financial -5.09% -3.14% -0.60%
Mr. Cooper Group 47.66% 62.93% 6.98%

Earnings and Valuation

This table compares Medallion Financial and Mr. Cooper Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medallion Financial $142.84 million 1.34 -$13.40 million ($0.54) -14.37
Mr. Cooper Group $1.79 billion 0.49 $1.04 billion N/A N/A

Mr. Cooper Group has higher revenue and earnings than Medallion Financial.

Summary

Mr. Cooper Group beats Medallion Financial on 7 of the 12 factors compared between the two stocks.

About Medallion Financial

Medallion Financial Corp., through with its subsidiaries, operates as a finance company in the United States. It originates, acquires, and services loans that finance taxicab medallions and various types of commercial businesses. The company offers consumer loans for the purchase of recreational vehicles, boats, motorcycles, and trailers, as well as to finance small scale home improvements; and commercial loans for the purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business. It also provides secured mezzanine loans to businesses in various industries; other secured commercial loans; and other debt, mezzanine, and equity investment capital to companies in various industries. In addition, the company raises deposits and conducts other banking activities. Medallion Financial Corp. was founded in 1995 and is headquartered in New York City, New York.

About Mr. Cooper Group

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. The company operates through three segments: Servicing, Originations, and Xome. The Servicing segment performs activities for originated and purchased loans, as well as operates as a subservicer for various clients that own the underlying servicing rights. The Originations segment originates, purchases, and sells mortgage loans. The Xome segment offers technology and data enhanced solutions to home buyers, home sellers, real estate professionals, and companies engaged in the servicing and origination of mortgage loans. The company operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is headquartered in Coppell, Texas.

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