Reviewing Medley Capital (NYSE:MCC) and Altaba (AABA)

Medley Capital (NYSE: MCC) and Altaba (NASDAQ:AABA) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Analyst Ratings

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This is a summary of current recommendations and price targets for Medley Capital and Altaba, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medley Capital 0 4 0 0 2.00
Altaba 0 5 5 0 2.50

Medley Capital currently has a consensus target price of $5.63, suggesting a potential upside of 37.87%. Altaba has a consensus target price of $69.11, suggesting a potential upside of 2.31%. Given Medley Capital’s higher probable upside, equities analysts plainly believe Medley Capital is more favorable than Altaba.

Valuation and Earnings

This table compares Medley Capital and Altaba’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medley Capital $96.26 million 2.31 -$15.07 million $0.67 6.09
Altaba $5.17 billion 11.41 -$214.32 million N/A N/A

Medley Capital has higher earnings, but lower revenue than Altaba.

Dividends

Medley Capital pays an annual dividend of $0.64 per share and has a dividend yield of 15.7%. Altaba does not pay a dividend. Medley Capital pays out 95.5% 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

31.5% of Medley Capital shares are held by institutional investors. Comparatively, 73.8% of Altaba shares are held by institutional investors. 8.7% of Medley Capital shares are held by insiders. Comparatively, 24.0% of Altaba shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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
Medley Capital -58.73% 7.23% 3.43%
Altaba N/A N/A N/A

Risk & Volatility

Medley Capital has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Altaba has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.

Summary

Altaba beats Medley Capital on 10 of the 15 factors compared between the two stocks.

Medley Capital Company Profile

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 Company Profile

Altaba Inc. operates as a non-diversified, closed-end management investment company in the United States. Its assets consist primarily of equity investments, short-term debt investments, and cash. The company was formerly known as Yahoo! Inc. and changed its name to Altaba Inc. in June 2017. Altaba Inc. was founded in 1994 and is based in New York, New York.

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