World Acceptance Corporation (NASDAQ: WRLD) is one of 27 publicly-traded companies in the “Consumer Lending” industry, but how does it contrast to its rivals? We will compare World Acceptance Corporation to related businesses based on the strength of its profitability, risk, analyst recommendations, dividends, institutional ownership, valuation and earnings.

Profitability

This table compares World Acceptance Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Acceptance Corporation 13.13% 15.75% 8.48%
World Acceptance Corporation Competitors -28.26% -17.28% 0.63%

Analyst Recommendations

This is a breakdown of current ratings and price targets for World Acceptance Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Acceptance Corporation 3 0 0 0 1.00
World Acceptance Corporation Competitors 192 744 1066 58 2.48

World Acceptance Corporation presently has a consensus price target of $52.33, indicating a potential downside of 33.74%. As a group, “Consumer Lending” companies have a potential upside of 60.92%. Given World Acceptance Corporation’s rivals stronger consensus rating and higher probable upside, analysts clearly believe World Acceptance Corporation has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

91.9% of World Acceptance Corporation shares are held by institutional investors. Comparatively, 77.6% of shares of all “Consumer Lending” companies are held by institutional investors. 27.3% of World Acceptance Corporation shares are held by company insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

World Acceptance Corporation has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500. Comparatively, World Acceptance Corporation’s rivals have a beta of 1.48, meaning that their average stock price is 48% more volatile than the S&P 500.

Earnings & Valuation

This table compares World Acceptance Corporation and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
World Acceptance Corporation $533.56 million $136.07 million 9.90
World Acceptance Corporation Competitors $564.84 million $92.07 million 15.73

World Acceptance Corporation’s rivals have higher revenue, but lower earnings than World Acceptance Corporation. World Acceptance Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

World Acceptance Corporation beats its rivals on 7 of the 13 factors compared.

About World Acceptance Corporation

World Acceptance Corporation operates a small-loan consumer finance business in 15 states and Mexico as of March 31, 2016. The Company offers short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. The Company offers standardized installment loans generally between $300 and $4,000 through 1,339 branches in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, Wisconsin and Mexico as of March 31, 2016. The Company generally serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses and credit card lenders. In the United States branches, the Company also offers income tax return preparation services to its loan customers and other individuals.

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