Contrasting MARA (NASDAQ:MARA) & LM Funding America (NASDAQ:LMFA)

LM Funding America (NASDAQ:LMFAGet Free Report) and MARA (NASDAQ:MARAGet Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
LM Funding America -96.23% -35.84% -31.86%
MARA 27.48% -8.40% -6.92%

Valuation and Earnings

This table compares LM Funding America and MARA”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LM Funding America $16.51 million 0.47 -$15.94 million ($4.91) -0.31
MARA $656.38 million 7.20 $261.17 million $1.36 10.24

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

Analyst Ratings

This is a summary of current recommendations for LM Funding America and MARA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LM Funding America 0 1 0 0 2.00
MARA 0 6 4 0 2.40

MARA has a consensus target price of $25.67, suggesting a potential upside of 84.39%. Given MARA’s stronger consensus rating and higher possible upside, analysts clearly believe MARA is more favorable than LM Funding America.

Volatility and Risk

LM Funding America has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, MARA has a beta of 5.76, meaning that its share price is 476% more volatile than the S&P 500.

Institutional and Insider Ownership

22.7% of LM Funding America shares are owned by institutional investors. Comparatively, 44.5% of MARA shares are owned by institutional investors. 36.1% of LM Funding America shares are owned by company insiders. Comparatively, 0.8% of MARA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

MARA beats LM Funding America on 13 of the 14 factors compared between the two stocks.

About LM Funding America

(Get Free Report)

LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.

About MARA

(Get Free Report)

MARA Holdings, Inc. operates as a digital asset technology company that mines digital assets with a focus on the bitcoin ecosystem in United States. The company was formerly known as Marathon Digital Holdings, Inc. and changed its name to MARA Holdings, Inc. in August 2024. MARA Holdings, Inc. was incorporated in 2010 and is headquartered in Fort Lauderdale, Florida.

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