Head to Head Analysis: World Acceptance (WRLD) & TPG RE Finance Trust (TRTX)

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

Dividends

TPG RE Finance Trust pays an annual dividend of $0.71 per share and has a dividend yield of 3.8%. World Acceptance does not pay a dividend.

Earnings & Valuation

This table compares World Acceptance and TPG RE Finance Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
World Acceptance $531.73 million 1.46 $73.60 million $7.32 12.00
TPG RE Finance Trust $92.39 million 12.14 $69.96 million N/A N/A

World Acceptance has higher revenue and earnings than TPG RE Finance Trust.

Profitability

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

Net Margins Return on Equity Return on Assets
World Acceptance 12.02% 13.90% 7.70%
TPG RE Finance Trust N/A N/A N/A

Institutional & Insider Ownership

91.9% of World Acceptance shares are held by institutional investors. Comparatively, 26.4% of TPG RE Finance Trust shares are held by institutional investors. 27.3% of World Acceptance shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Acceptance 3 0 0 0 1.00
TPG RE Finance Trust 0 2 3 0 2.60

World Acceptance currently has a consensus price target of $62.33, suggesting a potential downside of 29.05%. TPG RE Finance Trust has a consensus price target of $21.20, suggesting a potential upside of 12.71%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, analysts plainly believe TPG RE Finance Trust is more favorable than World Acceptance.

Summary

World Acceptance beats TPG RE Finance Trust on 7 of the 12 factors compared between the two stocks.

About World Acceptance

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.

About TPG RE Finance Trust

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.

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