FlexShopper (NASDAQ:FPAY – Get Free Report) and LM Funding America (NASDAQ:LMFA – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Profitability
This table compares FlexShopper and LM Funding America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FlexShopper | N/A | N/A | N/A |
| LM Funding America | -368.68% | -102.63% | -67.53% |
Volatility & Risk
FlexShopper has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, LM Funding America has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FlexShopper | $139.80 million | 0.00 | -$180,000.00 | ($0.23) | N/A |
| LM Funding America | $8.85 million | 0.22 | -$26.92 million | ($54.75) | -0.05 |
FlexShopper has higher revenue and earnings than LM Funding America. LM Funding America is trading at a lower price-to-earnings ratio than FlexShopper, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for FlexShopper and LM Funding America, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FlexShopper | 1 | 0 | 1 | 0 | 2.00 |
| LM Funding America | 1 | 0 | 1 | 0 | 2.00 |
FlexShopper presently has a consensus price target of $0.50, indicating a potential upside of 0.00%. LM Funding America has a consensus price target of $125.00, indicating a potential upside of 4,414.27%. Given LM Funding America’s higher probable upside, analysts plainly believe LM Funding America is more favorable than FlexShopper.
Insider & Institutional Ownership
19.4% of FlexShopper shares are held by institutional investors. Comparatively, 22.7% of LM Funding America shares are held by institutional investors. 30.2% of FlexShopper shares are held by insiders. Comparatively, 15.0% of LM Funding America shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
FlexShopper beats LM Funding America on 8 of the 11 factors compared between the two stocks.
About FlexShopper
FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories. It also provides payment options to consumers. The company offers its products under the LG, Samsung, Sony, TCL, Frigidaire, General Electric, Whirlpool, Apple, Asus, Dell, Hewlett Packard, Toshiba, Resident, Sealy, and Ashley brands. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.
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.
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