Crescent Capital BDC (NASDAQ:CCAP – Get Rating) and Medallion Financial (NASDAQ:MFIN – Get Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Profitability
This table compares Crescent Capital BDC and Medallion Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crescent Capital BDC | 5.49% | 8.98% | 4.16% |
| Medallion Financial | 22.51% | 13.44% | 2.21% |
Earnings and Valuation
This table compares Crescent Capital BDC and Medallion Financial’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Crescent Capital BDC | $116.72 million | 4.60 | $15.54 million | $0.21 | 69.05 |
| Medallion Financial | $206.15 million | 0.86 | $43.84 million | $2.10 | 3.61 |
Dividends
Crescent Capital BDC pays an annual dividend of $1.64 per share and has a dividend yield of 11.3%. Medallion Financial pays an annual dividend of $0.32 per share and has a dividend yield of 4.2%. Crescent Capital BDC pays out 781.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medallion Financial pays out 15.2% of its earnings in the form of a dividend. Medallion Financial has raised its dividend for 1 consecutive years.
Insider & Institutional Ownership
49.0% of Crescent Capital BDC shares are owned by institutional investors. Comparatively, 27.2% of Medallion Financial shares are owned by institutional investors. 1.0% of Crescent Capital BDC shares are owned by insiders. Comparatively, 22.4% of Medallion Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Crescent Capital BDC has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Medallion Financial has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Crescent Capital BDC and Medallion Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crescent Capital BDC | 0 | 0 | 3 | 0 | 3.00 |
| Medallion Financial | 0 | 2 | 1 | 0 | 2.33 |
Crescent Capital BDC currently has a consensus target price of $18.00, indicating a potential upside of 24.14%. Medallion Financial has a consensus target price of $9.50, indicating a potential upside of 25.16%. Given Medallion Financial’s higher possible upside, analysts plainly believe Medallion Financial is more favorable than Crescent Capital BDC.
Summary
Medallion Financial beats Crescent Capital BDC on 10 of the 17 factors compared between the two stocks.
About Crescent Capital BDC
Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.
About Medallion Financial
Acts as Private Equity Fund
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