Medley Capital (NYSE: MCC) and Altaba (NASDAQ:AABA) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Earnings and Valuation
This table compares Medley Capital and Altaba’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Medley Capital||$96.26 million||2.33||-$15.07 million||($0.97)||-4.25|
|Altaba||$5.17 billion||13.09||-$214.32 million||$27.03||2.87|
Institutional & Insider Ownership
31.6% of Medley Capital shares are owned by institutional investors. Comparatively, 73.9% of Altaba shares are owned by institutional investors. 15.0% of Medley Capital shares are owned by company insiders. Comparatively, 24.0% of Altaba shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Medley Capital pays an annual dividend of $0.64 per share and has a dividend yield of 15.5%. Altaba does not pay a dividend. Medley Capital pays out -66.0% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for Medley Capital and Altaba, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Medley Capital presently has a consensus target price of $5.63, suggesting a potential upside of 36.53%. Altaba has a consensus target price of $69.11, suggesting a potential downside of 10.77%. Given Medley Capital’s higher probable upside, equities analysts plainly believe Medley Capital is more favorable than Altaba.
This table compares Medley Capital and Altaba’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Medley Capital has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Altaba has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.
Altaba beats Medley Capital on 10 of the 16 factors compared between the two stocks.
About Medley Capital
Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor.
Altaba Inc. (the Fund), formerly Yahoo! Inc., is a non-diversified, closed-end management investment company. The Fund seeks to track the combined investment return of the Alibaba Shares and the Yahoo Japan Shares it owns. Alibaba Shares represent an approximate 15% equity interest in Alibaba Group Holding Limited (Alibaba), and its Yahoo Japan Corporation ((Yahoo Japa) Shares represent an approximate 36% equity interest in Yahoo Japan. In addition to the Alibaba Shares and the Yahoo Japan Shares, the Fund also owns the minority investments, all of the equity interests in Excalibur IP, LLC (which owns the Excalibur IP Assets) and the marketable debt securities portfolio. The Fund’s external investment advisors are BlackRock Advisors, LLC and Morgan Stanley Smith Barney LLC.
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