Financial Survey: Manhattan Bridge Capital (NASDAQ:LOAN) & Capital One Financial (NYSE:COF)

Manhattan Bridge Capital (NASDAQ:LOAN) and Capital One Financial (NYSE:COF) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Valuation & Earnings

This table compares Manhattan Bridge Capital and Capital One Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manhattan Bridge Capital	$9.69 million	6.37	$5.59 million	$0.47	11.48
Capital One Financial	$53.94 billion	2.63	$4.75 billion	$1.95	113.70

Capital One Financial has higher revenue and earnings than Manhattan Bridge Capital. Manhattan Bridge Capital is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 89.8% of Capital One Financial shares are held by institutional investors. 24.5% of Manhattan Bridge Capital shares are held by company insiders. Comparatively, 1.3% of Capital One Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Manhattan Bridge Capital has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Profitability

This table compares Manhattan Bridge Capital and Capital One Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manhattan Bridge Capital	59.04%	12.68%	8.07%
Capital One Financial	N/A	10.01%	1.40%

Dividends

Manhattan Bridge Capital pays an annual dividend of $0.46 per share and has a dividend yield of 8.5%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.1%. Manhattan Bridge Capital pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital One Financial pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manhattan Bridge Capital has increased its dividend for 1 consecutive years. Manhattan Bridge Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations for Manhattan Bridge Capital and Capital One Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	0	0	0	0.00
Capital One Financial	0	4	13	3	2.95

Capital One Financial has a consensus target price of $238.81, indicating a potential upside of 7.71%. Given Capital One Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Capital One Financial is more favorable than Manhattan Bridge Capital.

Summary

Capital One Financial beats Manhattan Bridge Capital on 10 of the 18 factors compared between the two stocks.

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.