Analyzing SBI (OTCMKTS:SBHGF) and LM Funding America (OTCMKTS:LMFA)

SBI (OTCMKTS:SBHGF) and LM Funding America (NASDAQ:LMFA) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Risk & Volatility

SBI has a beta of 4.39, suggesting that its share price is 339% more volatile than the S&P 500. Comparatively, LM Funding America has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500.



Analyst Ratings

This is a summary of recent ratings for SBI and LM Funding America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SBI 0 0 0 0 N/A
LM Funding America 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
SBI 14.24% 9.93% 1.08%
LM Funding America -28.88% -27.08% -17.78%

Earnings and Valuation

This table compares SBI and LM Funding America’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SBI $3.04 billion 1.88 $420.15 million N/A N/A
LM Funding America $3.39 million 1.07 -$470,000.00 N/A N/A

SBI has higher revenue and earnings than LM Funding America.

Insider and Institutional Ownership

3.7% of LM Funding America shares are held by institutional investors. 28.0% of LM Funding America shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

SBI beats LM Funding America on 7 of the 9 factors compared between the two stocks.

About SBI

SBI Holdings, Inc., together with its subsidiaries, engages in the online financial service businesses and investment activities in Japan and internationally. It operates through Financial Services Business, Asset Management Business, and Biotechnology-Related Business segments. The Financial Services Business segment provides various financial products and services, including brokerage and investment banking, banking, nonlife insurance and short-term small-amount insurance, and housing loan services; and credit card, leasing, remittance, peer-to-peer lending, and other services, as well as foreign-exchange market participant services. This segment operates proprietary trading system, which allows investors to trade stocks and bonds through electronic trading systems without stock exchanges. The Asset Management Business segment is involved in the venture capital, buyout investment, and financial and economic information activities. This segment also provides asset management services; and invests in hedge funds and private equity funds. The Biotechnology-Related Business segment develops, distributes, and sells pharmaceutical products, health foods, and cosmetics with 5-ALA as ingredient. This segment is also involved in the research and development of treatment methods and pharmaceuticals in autoimmune diseases and cancer fields. The company is also involved in the operation of various online intermediate services; development and trading of investment properties; provision of guarantee services for house rentals; and manufacture of mining chips, and development of mining systems. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was founded in 1999 and is headquartered in Tokyo, Japan.

About LM Funding America

LM Funding America, Inc., through its subsidiary, LM Funding, LLC, 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. The company was founded in 2008 and is based in Tampa, Florida.

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