Head-To-Head Review: Joint Stock Company Kaspi.kz (NASDAQ:KSPI) versus Medallion Financial (NASDAQ:MFIN)

Medallion Financial (NASDAQ:MFIN) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Risk & Volatility

Medallion Financial has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Joint Stock Company Kaspi.kz has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Medallion Financial and Joint Stock Company Kaspi.kz”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medallion Financial	$353.31 million	0.73	$43.04 million	$1.33	8.41
Joint Stock Company Kaspi.kz	$7.70 billion	2.30	$2.04 billion	$10.98	8.49

Joint Stock Company Kaspi.kz has higher revenue and earnings than Medallion Financial. Medallion Financial is trading at a lower price-to-earnings ratio than Joint Stock Company Kaspi.kz, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Medallion Financial and Joint Stock Company Kaspi.kz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medallion Financial	9.25%	7.11%	1.20%
Joint Stock Company Kaspi.kz	24.00%	40.69%	9.54%

Dividends

Medallion Financial pays an annual dividend of $0.56 per share and has a dividend yield of 5.0%. Joint Stock Company Kaspi.kz pays an annual dividend of $8.58 per share and has a dividend yield of 9.2%. Medallion Financial pays out 42.1% of its earnings in the form of a dividend. Joint Stock Company Kaspi.kz pays out 78.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

40.6% of Medallion Financial shares are owned by institutional investors. Comparatively, 32.2% of Joint Stock Company Kaspi.kz shares are owned by institutional investors. 24.6% of Medallion Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Medallion Financial and Joint Stock Company Kaspi.kz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medallion Financial	1	4	0	0	1.80
Joint Stock Company Kaspi.kz	0	3	1	0	2.25

Medallion Financial currently has a consensus price target of $12.62, suggesting a potential upside of 12.82%. Joint Stock Company Kaspi.kz has a consensus price target of $107.50, suggesting a potential upside of 15.37%. Given Joint Stock Company Kaspi.kz’s stronger consensus rating and higher possible upside, analysts clearly believe Joint Stock Company Kaspi.kz is more favorable than Medallion Financial.

Summary

Joint Stock Company Kaspi.kz beats Medallion Financial on 13 of the 16 factors compared between the two stocks.

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.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.