Critical Analysis: Stronghold Digital Mining (NASDAQ:SDIG) and Medallion Financial (NASDAQ:MFIN)

Stronghold Digital Mining (NASDAQ:SDIGGet Free Report) and Medallion Financial (NASDAQ:MFINGet Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

19.3% of Stronghold Digital Mining shares are held by institutional investors. Comparatively, 40.6% of Medallion Financial shares are held by institutional investors. 21.1% of Stronghold Digital Mining shares are held by insiders. Comparatively, 22.4% of Medallion Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Stronghold Digital Mining and Medallion Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stronghold Digital Mining 0 1 1 1 3.00
Medallion Financial 0 0 0 0 0.00

Stronghold Digital Mining currently has a consensus target price of $6.17, indicating a potential upside of 82.45%. Given Stronghold Digital Mining’s stronger consensus rating and higher probable upside, research analysts clearly believe Stronghold Digital Mining is more favorable than Medallion Financial.

Profitability

This table compares Stronghold Digital Mining and Medallion Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stronghold Digital Mining -11.21% 13.67% 3.59%
Medallion Financial 13.72% 9.52% 1.48%

Volatility and Risk

Stronghold Digital Mining has a beta of 2.99, suggesting that its stock price is 199% more volatile than the S&P 500. Comparatively, Medallion Financial has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500.

Earnings and Valuation

This table compares Stronghold Digital Mining and Medallion Financial”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stronghold Digital Mining $74.97 million 0.78 -$71.40 million ($3.70) -0.91
Medallion Financial $194.55 million 1.01 $55.08 million $1.69 5.07

Medallion Financial has higher revenue and earnings than Stronghold Digital Mining. Stronghold Digital Mining is trading at a lower price-to-earnings ratio than Medallion Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Medallion Financial beats Stronghold Digital Mining on 8 of the 15 factors compared between the two stocks.

About Stronghold Digital Mining

(Get Free Report)

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.

About Medallion Financial

(Get Free Report)

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.

Receive News & Ratings for Stronghold Digital Mining Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stronghold Digital Mining and related companies with MarketBeat.com's FREE daily email newsletter.