Stronghold Digital Mining (NASDAQ:SDIG) and Medallion Financial (NASDAQ:MFIN) Head to Head Analysis

Stronghold Digital Mining (NASDAQ:SDIG) and Medallion Financial (NASDAQ:MFIN) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Stronghold Digital Mining and Medallion Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stronghold Digital Mining	0	1	1	1	3.00
Medallion Financial	0	0	0	0	0.00

Stronghold Digital Mining presently has a consensus price target of $6.17, suggesting a potential upside of 95.77%. Given Stronghold Digital Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Stronghold Digital Mining is more favorable than Medallion Financial.

Insider & Institutional Ownership

19.3% of Stronghold Digital Mining shares are held by institutional investors. Comparatively, 40.6% of Medallion Financial shares are held by institutional investors. 21.1% of Stronghold Digital Mining shares are held by company insiders. Comparatively, 22.4% of Medallion Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Stronghold Digital Mining and Medallion Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stronghold Digital Mining	-11.21%	13.67%	3.59%
Medallion Financial	13.72%	9.52%	1.48%

Earnings & Valuation

This table compares Stronghold Digital Mining and Medallion Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stronghold Digital Mining	$74.97 million	0.72	-$71.40 million	($3.70)	-0.85
Medallion Financial	$262.36 million	0.76	$55.08 million	$1.69	5.09

Medallion Financial has higher revenue and earnings than Stronghold Digital Mining. Stronghold Digital Mining is trading at a lower price-to-earnings ratio than Medallion Financial, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Stronghold Digital Mining has a beta of 2.99, meaning that its share price is 199% more volatile than the S&P 500. Comparatively, Medallion Financial has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500.

About Stronghold Digital Mining

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.

About Medallion Financial

Medallion Financial Corp., together with its subsidiaries, operates as a specialty finance company in the United States. It operates in four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Taxi Medallion Lending. The company offers loans that finance consumer purchases of recreational vehicles, boats, and other consumer recreational equipment; consumer financing for window, siding, and roof replacement, swimming pool installations, and other home improvement projects; senior and subordinated loans for the purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and taxi medallion loans to individuals and small to mid-size businesses. It also provides debt, mezzanine, and equity investment capital to companies in various commercial industries; and raises deposits and conducts other banking activities. Medallion Financial Corp. was incorporated in 1995 and is headquartered in New York City, New York.