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

Valuation and Earnings

This table compares Hamilton Lane and Medley Management’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hamilton Lane $192.96 million 2.28 $87.34 million N/A N/A
Medley Management $67.57 million 0.52 $27.69 million $0.19 34.74

Hamilton Lane has higher revenue and earnings than Medley Management.

Institutional & Insider Ownership

61.4% of Hamilton Lane shares are held by institutional investors. Comparatively, 70.2% of Medley Management shares are held by institutional investors. 62.9% of Hamilton Lane 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Hamilton Lane and Medley Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hamilton Lane N/A N/A N/A
Medley Management 2.68% -45.80% 17.74%

Analyst Recommendations

This is a summary of recent ratings and price targets for Hamilton Lane and Medley Management, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hamilton Lane 0 3 2 0 2.40
Medley Management 0 3 1 0 2.25

Hamilton Lane currently has a consensus price target of $21.25, indicating a potential downside of 6.84%. Medley Management has a consensus price target of $9.06, indicating a potential upside of 37.31%. Given Medley Management’s higher possible upside, analysts clearly believe Medley Management is more favorable than Hamilton Lane.

Dividends

Hamilton Lane pays an annual dividend of $0.70 per share and has a dividend yield of 3.1%. Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 12.1%. Medley Management pays out 421.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Hamilton Lane beats Medley Management on 9 of the 14 factors compared between the two stocks.

Hamilton Lane Company Profile

Hamilton Lane Incorporated is a global private markets investment solutions provider. The Company works with its clients to conceive, structure, build out, manage and monitor portfolios of private markets funds and direct investments, and it helps them access a set of such investment opportunities around the world. It offers a range of investment solutions across a range of private markets, including private equity, private credit, real estate, infrastructure, natural resources, growth equity and venture capital. These solutions are constructed from a range of investment types, including primary investments in funds managed by third-party managers, direct/co-investments alongside such funds and acquisitions of secondary stakes in such funds, with a range of its clients utilizing multiple investment types. These solutions are offered in a range of formats covering some or all phases of private markets investment programs, such as Customized Separate Accounts and Specialized Funds.

Medley Management Company Profile

Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors. The Company operates in the investment management segment. It is focused on credit-related investment strategies, primarily originating senior secured loans to private middle market companies in the United States. The Company generally holds these loans to maturity. Its national direct origination franchise provides capital to the middle market in the United States. The Company has over $4.8 billion of assets under management (AUM) in approximately two business development companies (BDCs), Medley Capital Corporation (MCC) and Sierra Income Corporation (SIC), as well as private investment vehicles. It has over $5 billion of AUM. The Company provides capital to over 300 companies across approximately 35 industries in North America. The Company’s long-dated private funds include MOF I, MOF II and MOF III. Its private funds are managed through partnership structures

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