Critical Comparison: Medallion Financial (NASDAQ:MFIN) & The9 (NASDAQ:NCTY)

Valuation & Earnings

This table compares Medallion Financial and The9″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medallion Financial	$194.55 million	1.12	$55.08 million	$1.69	5.57
The9	$179.05 million	0.74	$2.82 million	N/A	N/A

Medallion Financial has higher revenue and earnings than The9.

Institutional & Insider Ownership

40.6% of Medallion Financial shares are held by institutional investors. Comparatively, 0.5% of The9 shares are held by institutional investors. 22.4% of Medallion Financial shares are held by company insiders. Comparatively, 30.8% of The9 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Medallion Financial and The9’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medallion Financial	13.72%	9.52%	1.48%
The9	N/A	N/A	N/A

Volatility and Risk

Medallion Financial has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500. Comparatively, The9 has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.

Summary

Medallion Financial beats The9 on 8 of the 9 factors compared between the two stocks.

About Medallion Financial

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.

About The9

The9 Limited operates as a cryptocurrency mining business in China, Eastern Europe, Asia, and North America. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People’s Republic of China.