Medallion Financial Corp. (MFIN) vs TROOPS, Inc. (TROO)

Medallion Financial Corp. and TROOPS, Inc. are both Credit Services companies. Medallion Financial Corp. is the larger, with a market value of $271.6M against $219.9M — 1.2× the size. TROOPS, Inc. has negative trailing earnings, so its P/E is not meaningful; Medallion Financial Corp. trades at 8.5×. Medallion Financial Corp. grew revenue faster over the last twelve months: 5.59% against −23.0%. Medallion Financial Corp. has the higher net margin (9.25% vs −115.9%) and the higher return on invested capital (7.06% vs 0.00%). Across the 15 metrics below, Medallion Financial Corp. leads on 13 and TROOPS, Inc. on 2.

Valuation

Metric MFIN TROO Credit Services median
P/E 8.54 n/m 9.64
P/S 0.80 n/m 0.87
P/B 0.55 n/m 1.16
Price to free cash flow 1.59 n/m 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales 1.03 1.44 2.32
Earnings yield 11.71% (4.52%) 6.72%
Free cash flow yield 62.79% 0.00% 12.33%

Profitability

Metric MFIN TROO Credit Services median
Gross margin 70.72% (10.20%) 77.13%
Operating margin 0.00% 0.00% 0.34%
Net margin 9.25% (115.89%) 9.25%
Free cash flow margin 49.97% 0.00% 13.03%
Return on equity 6.23% 0.00% 8.49%
Return on assets 1.07% 0.00% 2.29%
Return on invested capital 7.06% 0.00% 4.09%

Growth

Metric MFIN TROO Credit Services median
Revenue growth (TTM) 5.59% (23.02%) 4.62%
EPS growth (last fiscal year) 17.11% (76.92%) —
Revenue growth, 5-year CAGR 20.51% 31.83% 9.13%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MFIN TROO Credit Services median
Debt to equity 0.57 0.00 0.68
Current ratio 1.22 0.92 1.55
Net debt to EBITDA 0.00 0.15 0.13

Dividend

Metric MFIN TROO Credit Services median
Dividend yield 3.38% — 3.34%
Payout ratio 0.15 0.00 0.00

Size

Metric MFIN TROO Credit Services median
Market cap 271.62m 219.89m 872.19m

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