Comparing LM Funding America (NASDAQ:LMFA) and MARA (NASDAQ:MARA)

MARA (NASDAQ:MARAGet Free Report) and LM Funding America (NASDAQ:LMFAGet Free Report) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

44.5% of MARA shares are owned by institutional investors. Comparatively, 22.7% of LM Funding America shares are owned by institutional investors. 0.8% of MARA shares are owned by insiders. Comparatively, 36.1% of LM Funding America shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares MARA and LM Funding America”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MARA $656.38 million 7.20 $261.17 million $1.36 10.24
LM Funding America $16.51 million 0.47 -$15.94 million ($4.91) -0.31

MARA has higher revenue and earnings than LM Funding America. LM Funding America is trading at a lower price-to-earnings ratio than MARA, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

MARA has a beta of 5.76, suggesting that its stock price is 476% more volatile than the S&P 500. Comparatively, LM Funding America has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Profitability

This table compares MARA and LM Funding America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MARA 27.48% -8.40% -6.92%
LM Funding America -96.23% -35.84% -31.86%

Analyst Recommendations

This is a summary of recent ratings and price targets for MARA and LM Funding America, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MARA 0 6 4 0 2.40
LM Funding America 0 1 0 0 2.00

MARA currently has a consensus price target of $25.67, suggesting a potential upside of 84.39%. Given MARA’s stronger consensus rating and higher probable upside, research analysts clearly believe MARA is more favorable than LM Funding America.

Summary

MARA beats LM Funding America on 13 of the 14 factors compared between the two stocks.

About MARA

(Get Free Report)

MARA Holdings, Inc. operates as a digital asset technology company that mines digital assets with a focus on the bitcoin ecosystem in United States. The company was formerly known as Marathon Digital Holdings, Inc. and changed its name to MARA Holdings, Inc. in August 2024. MARA Holdings, Inc. was incorporated in 2010 and is headquartered in Fort Lauderdale, Florida.

About LM Funding America

(Get Free Report)

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.

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