Contrasting LM Funding America (NASDAQ:LMFA) & Tokens.com (OTC:SMURF)

Tokens.com (OTC:SMURF) and LM Funding America (NASDAQ:LMFA) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tokens.com	-454.36%	-40.05%	-36.93%
LM Funding America	-58.81%	-24.61%	-22.91%

Analyst Ratings

This is a breakdown of current recommendations for Tokens.com and LM Funding America, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokens.com	0	1	0	0	2.00
LM Funding America	0	1	0	0	2.00

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokens.com	$740,000.00	18.63	-$10.14 million	-0.01	-11.40
LM Funding America	$12.98 million	0.78	-$15.94 million	($4.14)	-0.98

Tokens.com has higher earnings, but lower revenue than LM Funding America. Tokens.com is trading at a lower price-to-earnings ratio than LM Funding America, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

22.7% of LM Funding America shares are held by institutional investors. 20.2% of LM Funding America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

LM Funding America beats Tokens.com on 7 of the 10 factors compared between the two stocks.

About Tokens.com

Tokens.com Corp. provides blockchain verification services through proof-of-stake technology. The company's technology secures blockchain networks through proof-of-stake technology to support the growth of decentralized finance applications. It also provides web3 technology services for metaverses, non-fungible tokens, and ecomm3, as well as consulting services; and builds web3 games. Tokens.com Corp. is based in Toronto, Canada.

About LM Funding America

LM Funding America, Inc. operates as a cryptocurrency mining and technology-based specialty finance company. It engages in Bitcoin mining operations. The company also provides funding to nonprofit community associations primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois. The company was founded in 2008 and is based in Tampa, Florida.