Gladstone Investment and Medallion Financial: A Critical Comparison

Analyzing the strengths and weaknesses of these two small-cap finance companies

Published on Feb. 16, 2026

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Medallion Financial (NASDAQ:MFIN) and Gladstone Investment (NASDAQ:GAIN) are both small-cap finance companies, but which one is the better business? This article compares the two companies based on factors like dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership, and risk.

Why it matters

Understanding the relative performance and positioning of these two finance companies can help investors make more informed decisions about where to allocate their capital in the small-cap finance sector.

The details

The analysis finds that Medallion Financial has a stronger consensus rating from analysts and higher potential upside, while Gladstone Investment has lower revenue but higher earnings and a lower price-to-earnings ratio, making it more affordable. Medallion Financial has a higher dividend yield of 4.7% compared to Gladstone Investment's 6.9%, but both have healthy payout ratios. Medallion Financial also has higher institutional ownership and insider ownership, suggesting stronger confidence from large investors and company leadership.

  • This analysis was published on February 16, 2026.

The players

Medallion Financial Corp.

A specialty finance company that operates in four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Taxi Medallion Lending.

Gladstone Investment Corporation

A business development company that specializes in lower middle market, mature stage buyouts, refinancing existing debt, and providing senior and subordinated debt securities as well as equity investments.

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The takeaway

This analysis highlights the key differences between Medallion Financial and Gladstone Investment, two small-cap finance companies with distinct business models and financial profiles. Investors will need to weigh the relative strengths and weaknesses of each company to determine which one best fits their investment objectives and risk tolerance.