Comparing PHH Corp (PHH) and Cash America International (CSH)
PHH Corp (NYSE: PHH) and Cash America International (NYSE:CSH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Institutional and Insider Ownership
97.0% of PHH Corp shares are held by institutional investors. 2.5% of PHH Corp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares PHH Corp and Cash America International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PHH Corp||$734.00 million||1.03||-$272.04 million||($5.10)||-2.78|
|Cash America International||N/A||N/A||N/A||$1.18||35.76|
Cash America International has higher revenue, but lower earnings than PHH Corp. PHH Corp is trading at a lower price-to-earnings ratio than Cash America International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
PHH Corp has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500. Comparatively, Cash America International has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
Cash America International pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. PHH Corp does not pay a dividend. Cash America International pays out 27.1% of its earnings in the form of a dividend. PHH Corp has raised its dividend for 2 consecutive years.
This table compares PHH Corp and Cash America International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cash America International||0.87%||0.86%||0.64%|
This is a breakdown of current recommendations and price targets for PHH Corp and Cash America International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cash America International||0||1||1||0||2.50|
PHH Corp presently has a consensus target price of $16.25, indicating a potential upside of 14.76%. Cash America International has a consensus target price of $57.00, indicating a potential upside of 35.07%. Given Cash America International’s higher possible upside, analysts plainly believe Cash America International is more favorable than PHH Corp.
About PHH Corp
PHH Corporation is a standalone mortgage company. The Company provides outsourced mortgage banking services to a range of clients, including financial institutions and real estate brokers throughout the United States, and is focused on originating, selling, servicing and subservicing residential mortgage loans through its subsidiary, PHH Mortgage Corporation and its subsidiaries. It operates through two segments: Mortgage Production and Mortgage Servicing. The Mortgage Production segment provides mortgage loan origination services and sells mortgage loans. The Mortgage Servicing segment performs servicing activities for loans originated by the Company and mortgage servicing rights purchased from others, and acts as a subservicer for certain clients that own the underlying mortgage servicing rights. The Mortgage Production segment provides private label mortgage services to financial institutions and real estate brokers, and sources mortgage loans through its retail platform.
About Cash America International
Cash America International, Inc. provides specialty financial services to individuals through its storefront lending and franchised check cashing locations. The Company offers secured non-recourse loans, referred to as pawn loans, as its primary line of business. The Company is also engaged in originating, arranging, guaranteeing or purchasing consumer loans in some of its locations. The Company also offers check cashing and other ancillary products and services, including money orders, wire transfers and auto insurance. The Company’s franchised check cashing business offers check cashing services through its franchised check cashing centers. The Company provides its services in the United States under the names Cash America Pawn, SuperPawn, Cash America Payday Advance, Cashland and Mr. Payroll. The Company is engaged in pawn lending activities, merchandise disposition activities, consumer loan activities and check cashing and other financial services.
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