Head-To-Head Review: LM Funding America (NASDAQ:LMFA) vs. Carbon Streaming (OTCMKTS:OFSTF)

LM Funding America (NASDAQ:LMFA) and Carbon Streaming (OTCMKTS:OFSTF) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for LM Funding America and Carbon Streaming, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LM Funding America	0	1	0	0	2.00
Carbon Streaming	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LM Funding America	-96.23%	-35.84%	-31.86%
Carbon Streaming	-5,329.32%	-7.99%	-7.61%

Earnings and Valuation

This table compares LM Funding America and Carbon Streaming”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LM Funding America	$12.98 million	0.71	-$15.94 million	($4.91)	-0.36
Carbon Streaming	$1.17 million	14.77	-$35.50 million	($1.59)	-0.21

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

Volatility and Risk

LM Funding America has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Carbon Streaming has a beta of -63.39, suggesting that its share price is 6,439% less volatile than the S&P 500.

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, 2.4% of Carbon Streaming shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

LM Funding America beats Carbon Streaming on 7 of the 12 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 Carbon Streaming

Carbon Streaming Corporation a carbon credit streaming and royalty company focused on creating shareholder value primarily through the acquisition and sale of carbon credits. It provides capital to carbon projects globally, primarily by entering into or acquiring streaming, royalty or royalty-like arrangements for the purchase of carbon credits. The company was formerly known as Mexivada Mining Corp. and changed its name to Carbon Streaming Corporation in June 2020. Carbon Streaming Corporation was incorporated in 2004 and is headquartered in Burlington, Canada.