EZCORP (NASDAQ:EZPW) vs. Mr. Cooper Group (NASDAQ:COOP) Critical Comparison

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

Risk & Volatility

Mr. Cooper Group has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, EZCORP has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Mr. Cooper Group and EZCORP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mr. Cooper Group	0	5	4	0	2.44
EZCORP	0	2	2	1	2.80

Mr. Cooper Group currently has a consensus price target of $140.38, indicating a potential downside of 33.84%. EZCORP has a consensus price target of $18.50, indicating a potential upside of 2.04%. Given EZCORP’s stronger consensus rating and higher probable upside, analysts clearly believe EZCORP is more favorable than Mr. Cooper Group.

Insider and Institutional Ownership

89.8% of Mr. Cooper Group shares are owned by institutional investors. Comparatively, 99.8% of EZCORP shares are owned by institutional investors. 1.7% of Mr. Cooper Group shares are owned by company insiders. Comparatively, 2.1% of EZCORP shares are owned 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.

Profitability

This table compares Mr. Cooper Group and EZCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mr. Cooper Group	25.38%	15.66%	4.22%
EZCORP	7.96%	11.85%	6.13%

Earnings and Valuation

This table compares Mr. Cooper Group and EZCORP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mr. Cooper Group	$2.23 billion	6.10	$669.00 million	$8.74	24.28
EZCORP	$1.16 billion	0.95	$83.10 million	$1.28	14.16

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

Summary

Mr. Cooper Group beats EZCORP on 9 of the 15 factors compared between the two stocks.

About Mr. Cooper Group

Mr. Cooper Group Inc., together with its subsidiaries, operates as a non-bank servicer of residential mortgage loans in the United States. The company operates through Servicing and Originations segments. The Servicing segment performs activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans, performing collections, foreclosures, and the sale of real estate owned. The Originations segment originates residential mortgage loans through its direct-to-consumer and correspondent channels. The company provides its services under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.

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.