Elevate Credit (NYSE: ELVT) and Thomson Reuters Corp (NYSE:TRI) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Dividends

Thomson Reuters Corp pays an annual dividend of $1.38 per share and has a dividend yield of 3.0%. Elevate Credit does not pay a dividend. Thomson Reuters Corp pays out 33.9% of its earnings in the form of a dividend. Elevate Credit has raised its dividend for 9 consecutive years.

Profitability

This table compares Elevate Credit and Thomson Reuters Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elevate Credit N/A N/A N/A
Thomson Reuters Corp 26.81% 13.64% 6.42%

Valuation & Earnings

This table compares Elevate Credit and Thomson Reuters Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Elevate Credit $629.78 million 0.43 $59.10 million N/A N/A
Thomson Reuters Corp $11.20 billion 2.99 $2.52 billion $4.07 11.42

Thomson Reuters Corp has higher revenue and earnings than Elevate Credit.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Elevate Credit and Thomson Reuters Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elevate Credit 0 1 6 0 2.86
Thomson Reuters Corp 1 8 4 0 2.23

Elevate Credit presently has a consensus target price of $11.00, indicating a potential upside of 56.70%. Thomson Reuters Corp has a consensus target price of $49.55, indicating a potential upside of 6.60%. Given Elevate Credit’s stronger consensus rating and higher probable upside, analysts clearly believe Elevate Credit is more favorable than Thomson Reuters Corp.

Institutional & Insider Ownership

0.1% of Elevate Credit shares are held by institutional investors. Comparatively, 26.6% of Thomson Reuters Corp shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Thomson Reuters Corp beats Elevate Credit on 8 of the 13 factors compared between the two stocks.

Elevate Credit Company Profile

Elevate Credit, Inc. provides online credit solutions to non-prime consumers, typically defined as those with credit scores of less than 700. The Company uses advanced technology risk analytics to provide financial options to its customers, who are not well-served by either banks or legacy non-prime lenders. It offers online installment loans and lines of credit in the United States, and the United Kingdom. Its products, Rise, Elastic and Sunny, provide customers with access to priced credit and services while helping them with credit building and financial wellness features. Its products include credit building and financial wellness programs, such as credit reporting, free credit monitoring (in the United States) and online financial literacy videos and tools. Rise is an installment loan product. As of March 31, 2016, Rise was available in 15 states in the United States. Sunny is the Company’s United Kingdom installment loan product.

Thomson Reuters Corp Company Profile

Thomson Reuters Corporation (Thomson Reuters) is a provider of news and information for professional markets. The Company is organized in three business units: Financial & Risk, Legal, and Tax & Accounting. The Financial & Risk segment is a provider of critical news, information and analytics, enabling transactions and connecting communities of trading, investment, financial and corporate professionals. The Legal segment is a provider of critical online and print information, decision tools, software and services that support legal, investigation, business and government professionals around the world. The Tax & Accounting segment is a provider of integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. The Company also operates Reuters, Global Growth Organization (GGO), and Enterprise Technology & Operations (ET&O). Thomson Reuters operates in over 100 countries.

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