Enova International (NYSE:ENVA) vs. EZCORP (NASDAQ:EZPW) Financial Analysis

EZCORP (NASDAQ:EZPW) and Enova International (NYSE:ENVA) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for EZCORP and Enova International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EZCORP	0	2	5	1	2.88
Enova International	0	1	6	1	3.00

EZCORP currently has a consensus price target of $20.50, indicating a potential upside of 14.78%. Enova International has a consensus price target of $116.80, indicating a potential downside of 3.47%. Given EZCORP’s higher probable upside, analysts plainly believe EZCORP is more favorable than Enova International.

Volatility & Risk

EZCORP has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Enova International has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Earnings and Valuation

This table compares EZCORP and Enova International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EZCORP	$1.23 billion	0.88	$83.10 million	$1.41	12.67
Enova International	$3.04 billion	0.99	$209.45 million	$10.88	11.12

Enova International has higher revenue and earnings than EZCORP. Enova International is trading at a lower price-to-earnings ratio than EZCORP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares EZCORP and Enova International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EZCORP	7.96%	11.85%	6.13%
Enova International	9.64%	24.50%	5.36%

Insider and Institutional Ownership

99.8% of EZCORP shares are held by institutional investors. Comparatively, 89.4% of Enova International shares are held by institutional investors. 2.1% of EZCORP shares are held by company insiders. Comparatively, 8.4% of Enova International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Enova International beats EZCORP on 10 of the 14 factors compared between the two stocks.

About EZCORP

EZCORP, Inc. provides pawn services in the United States and Latin America. The company operates through three segments: U.S. Pawn, Latin America Pawn, and Other Investments. The company offers pawn loans collateralized by tangible personal property, jewelry, consumer electronics, tools, sporting goods, and musical instruments. It also retails merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers. In addition, the company provides EZ+, a web-based application that allow customers to manage their pawn transactions, layaways, and loyalty rewards online. Further, it operates under the EZPAWN, Value Pawn & Jewelry, Empeño Fácil, Cash Apoyo Efectivo, GuatePrenda, and MaxiEfectivo brands. EZCORP, Inc. was incorporated in 1989 and is headquartered in Austin, Texas.

About Enova International

Enova International, Inc., a technology and analytics company, provides online financial services in the United States, Brazil, and internationally. The company provides installment loans; line of credit accounts; CSO programs, including arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs, such as marketing services and loan servicing for near-prime unsecured consumer installment loan. It offers money transfer services. It markets its financing products under the CashNetUSA, NetCredit, OnDeck, Headway Capital, Simplic, and Pangea names. The company was founded in 2003 and is headquartered in Chicago, Illinois.