TPG RE Finance Trust (NASDAQ: TRTX) and EZCORP (NASDAQ:EZPW) are both small-cap financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares TPG RE Finance Trust and EZCORP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TPG RE Finance Trust N/A N/A N/A N/A N/A
EZCORP $750.47 million 0.72 $67.71 million $0.44 22.61

EZCORP has higher revenue and earnings than TPG RE Finance Trust.

Analyst Ratings

This is a breakdown of current recommendations and price targets for TPG RE Finance Trust and EZCORP, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TPG RE Finance Trust 0 2 3 0 2.60
EZCORP 0 3 1 0 2.25

TPG RE Finance Trust currently has a consensus target price of $21.20, suggesting a potential upside of 9.67%. EZCORP has a consensus target price of $10.00, suggesting a potential upside of 0.50%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, equities analysts clearly believe TPG RE Finance Trust is more favorable than EZCORP.

Profitability

This table compares TPG RE Finance Trust and EZCORP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TPG RE Finance Trust 48.73% 10.27% 3.73%
EZCORP 2.98% 3.57% 2.27%

Institutional and Insider Ownership

89.4% of EZCORP shares are held by institutional investors. 2.1% of EZCORP 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.

Summary

TPG RE Finance Trust beats EZCORP on 6 of the 9 factors compared between the two stocks.

TPG RE Finance Trust Company Profile

TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.

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.

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