Medley Management (NYSE:MDLY) and U.S. Global Investors (NASDAQ:GROW) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Risk & Volatility

Medley Management has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, U.S. Global Investors has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Valuation and Earnings

This table compares Medley Management and U.S. Global Investors’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medley Management $56.51 million 0.28 -$2.43 million N/A N/A
U.S. Global Investors $6.26 million 3.00 $640,000.00 N/A N/A

U.S. Global Investors has lower revenue, but higher earnings than Medley Management.

Dividends

Medley Management pays an annual dividend of $0.12 per share and has a dividend yield of 4.4%. U.S. Global Investors pays an annual dividend of $0.03 per share and has a dividend yield of 2.4%.

Profitability

This table compares Medley Management and U.S. Global Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medley Management -4.30% -3.76% 4.07%
U.S. Global Investors -72.71% -16.46% -15.13%

Insider and Institutional Ownership

54.3% of Medley Management shares are held by institutional investors. Comparatively, 24.0% of U.S. Global Investors shares are held by institutional investors. 5.1% of Medley Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Medley Management and U.S. Global Investors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medley Management 0 2 0 0 2.00
U.S. Global Investors 0 0 0 0 N/A

Medley Management presently has a consensus target price of $6.00, suggesting a potential upside of 118.98%. Given Medley Management’s higher probable upside, equities research analysts clearly believe Medley Management is more favorable than U.S. Global Investors.

Summary

Medley Management beats U.S. Global Investors on 9 of the 11 factors compared between the two stocks.

Medley Management Company Profile

Medley Management Inc. is an investment holding company and operate and control all of the business and affairs of Medley LLC and its subsidiaries. Medley Management Inc. was incorporated on June 13, 2014 and is based in New York, New York.

U.S. Global Investors Company Profile

U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. It also manages hedge funds. The firm also manages exchange traded funds. It invests in the public equity and fixed income markets across the globe. It invests in G.A.R.P. and value stocks to make its equity investments. The firm employs a fundamental and quantitative analysis with top-down and bottom-up stock picking approach to make its investments. U.S. Global Investors, Inc. was founded in 1968 and is based in San Antonio, Texas.

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