Medallion Financial vs Medallion Bank Which Is Superior?

Medallion Financial Corporation (MFIN) and Medallion Bank (MFINL) are two financial institutions with ties to the taxi medallion industry. Medallion Financial Corp operates as a specialty finance company providing loans for the purchase of taxi medallions, while Medallion Bank is a federally-chartered bank that also focuses on financing taxi medallions. Both companies have faced challenges in recent years due to the rise of ride-sharing services such as Uber and Lyft, causing significant declines in the value of taxi medallions. This has impacted their stock performance and raised concerns about their long-term viability in a changing industry.

Medallion Financial or Medallion Bank?

When comparing Medallion Financial and Medallion Bank, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Medallion Financial and Medallion Bank.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Medallion Financial has a dividend yield of 3.97%, while Medallion Bank has a dividend yield of 7.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Medallion Financial reports a 5-year dividend growth of 0.00% year and a payout ratio of 22.96%. On the other hand, Medallion Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 42.96%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Medallion Financial P/E ratio at 5.79 and Medallion Bank's P/E ratio at 1.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Medallion Financial P/B ratio is 0.64 while Medallion Bank's P/B ratio is 0.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Medallion Financial has seen a 5-year revenue growth of 2.44%, while Medallion Bank's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Medallion Financial's ROE at 11.38% and Medallion Bank's ROE at 18.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.04 for Medallion Financial and $25.39 for Medallion Bank. Over the past year, Medallion Financial's prices ranged from $6.48 to $10.50, with a yearly change of 62.04%. Medallion Bank's prices fluctuated between $22.75 and $27.00, with a yearly change of 18.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.