Compare Open Lending Corporation (LPRO) vs Medallion Financial Corp. (MFIN) Stock

Medallion Financial Corp. (MFIN) offers the better valuation at 6.6x trailing P/E (7.1x forward), making it the more compelling value choice. Analysts rate Open Lending Corporation (LPRO) a "Hold" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Medallion Financial Corp. is actually cheaper at 7.1x.

Over the past 5 years, Medallion Financial Corp. (MFIN) delivered a total return of +61.1%, compared to -96.8% for Open Lending Corporation (LPRO). A $10,000 investment in MFIN five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MFIN returned +50.0% versus LPRO's -86.2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Medallion Financial Corp. (MFIN) is the lower-risk stock at 0.57β versus Open Lending Corporation's 1.42β — meaning LPRO is approximately 148% more volatile than MFIN relative to the S&P 500. On balance sheet safety, Medallion Financial Corp. (MFIN) carries a lower debt/equity ratio of 66% versus 184% for Open Lending Corporation — giving it more financial flexibility in a downturn.

Medallion Financial Corp. (MFIN) is the more profitable company, earning 12.3% net margin versus -562.0% for Open Lending Corporation — meaning it keeps 12.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MFIN leads at 21.6% versus -272.1% for LPRO. At the gross margin level — before operating expenses — MFIN leads at 43.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Medallion Financial Corp. (MFIN) trades at 7.1x forward P/E versus 11.4x for Open Lending Corporation — 4.4x cheaper on a one-year earnings basis.

In this comparison, MFIN (3.9% yield) pays a dividend. LPRO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Medallion Financial Corp. (MFIN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.57), 3.9% yield). Both have compounded well over 10 years (MFIN: +50.0%, LPRO: -86.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: LPRO is a small-cap quality compounder stock; MFIN is a small-cap deep-value stock. MFIN pays a dividend while LPRO does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.