EZCORP (NASDAQ: EZPW) and OneMain Holdings (NYSE:OMF) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent recommendations and price targets for EZCORP and OneMain Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EZCORP 0 3 1 0 2.25
OneMain Holdings 0 8 8 0 2.50

EZCORP presently has a consensus target price of $9.25, suggesting a potential downside of 6.09%. OneMain Holdings has a consensus target price of $29.56, suggesting a potential upside of 4.98%. Given OneMain Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe OneMain Holdings is more favorable than EZCORP.

Profitability

This table compares EZCORP and OneMain Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EZCORP 3.16% 3.65% 2.29%
OneMain Holdings 3.63% 14.31% 2.42%

Institutional and Insider Ownership

89.4% of EZCORP shares are held by institutional investors. Comparatively, 95.7% of OneMain Holdings shares are held by institutional investors. 2.1% of EZCORP shares are held by insiders. Comparatively, 57.7% of OneMain Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

EZCORP has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, OneMain Holdings has a beta of 2.85, indicating that its stock price is 185% more volatile than the S&P 500.

Valuation & Earnings

This table compares EZCORP and OneMain Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EZCORP $750.47 million 0.71 $67.71 million $0.44 22.39
OneMain Holdings $1.84 billion 2.07 $127.18 million $0.94 29.96

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

Summary

OneMain Holdings beats EZCORP on 14 of the 14 factors compared between the two stocks.

EZCORP Company Profile

EZCORP, Inc. provides pawn loans in the United States and Mexico, and consumer loans in Mexico. The Company operates through three segments: U.S. Pawn, which includes its EZPAWN, Value Pawn & Jewelry and other branded pawn operations in the United States; Mexico Pawn, which includes its Empeno Facil pawn operations and cash converters buy/sell store operations in Mexico, and Other International, which includes its CASHMAX financial services operations in Canada and its equity interest in Cash Converters International. It offers pawn loans, which are non-recourse loans, collateralized by tangible property, and it sells merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers at its pawn stores.

OneMain Holdings Company Profile

OneMain Holdings, Inc. is a financial services holding company. The Company is a consumer finance company, which is engaged in providing personal loan products; credit and non-credit insurance, and service loans owned by it and service or subservice loans owned by third-parties. The Company’s segments include Consumer and Insurance; Acquisitions and Servicing; Real Estate, and Other. It is engaged in pursuing strategic acquisitions and dispositions of assets and businesses, including loan portfolios or other financial assets. The Company originates and services personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations. As of December 31, 2016, its combined branch operations included over 1,800 branch offices in 44 states. It offers optional credit insurance products to its customers, including credit life insurance, credit disability insurance, credit involuntary unemployment insurance and collateral protection insurance.

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