LM Funding America (LMFA) and Its Peers Critical Contrast

LM Funding America (NASDAQ:LMFAGet Rating) is one of 68 publicly-traded companies in the “Nondepository credit institutions” industry, but how does it contrast to its rivals? We will compare LM Funding America to related companies based on the strength of its institutional ownership, profitability, analyst recommendations, earnings, valuation, dividends and risk.

Insider and Institutional Ownership

6.7% of LM Funding America shares are held by institutional investors. Comparatively, 38.8% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 0.4% of LM Funding America shares are held by company insiders. Comparatively, 21.7% of shares of all “Nondepository credit institutions” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for LM Funding America and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LM Funding America 0 0 1 0 3.00
LM Funding America Competitors 242 1135 1672 59 2.50

LM Funding America currently has a consensus price target of $3.00, indicating a potential upside of 296.09%. As a group, “Nondepository credit institutions” companies have a potential upside of 54.97%. Given LM Funding America’s stronger consensus rating and higher probable upside, equities analysts clearly believe LM Funding America is more favorable than its rivals.

Profitability

This table compares LM Funding America and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LM Funding America -1,563.00% -39.18% -38.35%
LM Funding America Competitors -46.18% 12.94% 0.70%

Risk and Volatility

LM Funding America has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, LM Funding America’s rivals have a beta of 6.63, indicating that their average stock price is 563% more volatile than the S&P 500.

Valuation and Earnings

This table compares LM Funding America and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LM Funding America $900,000.00 $4.76 million -0.38
LM Funding America Competitors $4.39 billion $857.64 million -4.92

LM Funding America’s rivals have higher revenue and earnings than LM Funding America. LM Funding America is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

LM Funding America rivals beat LM Funding America on 9 of the 13 factors compared.

About LM Funding America

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LM Funding America, Inc. operates as a specialty finance company. It provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois. The company offers funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty program. LM Funding America, Inc. was founded in 2008 and is based in Tampa, Florida.

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