RocketFuel Blockchain (OTCMKTS:RKFL) versus LM Funding America (NASDAQ:LMFA) Financial Review

LM Funding America (NASDAQ:LMFA) and RocketFuel Blockchain (OTCMKTS:RKFL) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Profitability

This table compares LM Funding America and RocketFuel Blockchain’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%
RocketFuel Blockchain	N/A	N/A	N/A

Volatility & Risk

LM Funding America has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, RocketFuel Blockchain has a beta of -2.05, indicating that its share price is 305% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LM Funding America	$7.03 million	1.42	-$15.94 million	($6.76)	-0.29
RocketFuel Blockchain	$200,000.00	0.08	-$3.78 million	N/A	N/A

RocketFuel Blockchain has lower revenue, but higher earnings than LM Funding America.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LM Funding America	0	1	0	0	2.00
RocketFuel Blockchain	0	0	0	0	0.00

Institutional and Insider Ownership

22.7% of LM Funding America shares are owned by institutional investors. Comparatively, 7.2% of RocketFuel Blockchain shares are owned by institutional investors. 36.1% of LM Funding America shares are owned by company insiders. Comparatively, 28.7% of RocketFuel Blockchain shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

LM Funding America beats RocketFuel Blockchain on 6 of the 10 factors compared between the two stocks.

About LM Funding America

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 RocketFuel Blockchain

RocketFuel Blockchain, Inc. provides payment and check-out systems for shoppers on e-commerce sites using cryptocurrencies, bitcoin, and direct bank transfers. It also offers payout solutions, cross-border B2B transfer solutions, and other solutions, as well as invoicing and crypto payments services. The company has a strategic partnership with ACI Worldwide, Inc. to offer the cryptocurrency payment solution available to customers through ACI portals. RocketFuel Blockchain, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.