STONECASTLE Fin/COM (NASDAQ:BANX) and Medley Management (NYSE:MDLY) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for STONECASTLE Fin/COM and Medley Management, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STONECASTLE Fin/COM 0 0 4 0 3.00
Medley Management 0 2 0 0 2.00

STONECASTLE Fin/COM presently has a consensus price target of $23.75, indicating a potential upside of 6.22%. Medley Management has a consensus price target of $6.00, indicating a potential upside of 14.29%. Given Medley Management’s higher probable upside, analysts clearly believe Medley Management is more favorable than STONECASTLE Fin/COM.

Institutional & Insider Ownership

22.9% of STONECASTLE Fin/COM shares are held by institutional investors. Comparatively, 60.5% of Medley Management shares are held by institutional investors. 8.1% of STONECASTLE Fin/COM shares are held by company insiders. Comparatively, 5.1% of Medley Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares STONECASTLE Fin/COM and Medley Management’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
STONECASTLE Fin/COM $17.37 million 8.43 $12.03 million $1.59 14.06
Medley Management $65.56 million 0.45 $920,000.00 N/A N/A

STONECASTLE Fin/COM has higher earnings, but lower revenue than Medley Management.

Dividends

STONECASTLE Fin/COM pays an annual dividend of $1.52 per share and has a dividend yield of 6.8%. Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 15.2%. STONECASTLE Fin/COM pays out 95.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

STONECASTLE Fin/COM has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Medley Management has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Profitability

This table compares STONECASTLE Fin/COM and Medley Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STONECASTLE Fin/COM 78.09% N/A N/A
Medley Management -2.16% -10.97% 7.85%

Summary

Medley Management beats STONECASTLE Fin/COM on 8 of the 15 factors compared between the two stocks.

About STONECASTLE Fin/COM

StoneCastle Financial Corp. is a closed ended balanced mutual fund launched and managed by StoneCastle Asset Management LLC. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across the banking sector. It invests in dividend paying growth and value stocks of companies. For its fixed income portion, the fund invests in subordinated debt securities which are rated BBB- or better by Kroll Ratings. The fund employs fundamental analysis with bottom-up security picking approach by focusing on factors such as review of historical and prospective financial information, interviews with management and key employees of the prospective bank, financial models and projections, changes in interest rates, changes in unemployment rates, changes in home prices, changes in economic activity to create its portfolio. It employs proprietary research to create its portfolio. StoneCastle Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.

About Medley Management

Medley Management Inc. is an investment holding company and operate and control all of the business and affairs of Medley LLC and its subsidiaries. Medley Management Inc. was incorporated on June 13, 2014 and is based in New York, New York.

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