Analyzing Virtu Financial (NASDAQ:VIRT) & Curo Group (CURO)

Curo Group (NYSE: CURO) and Virtu Financial (NASDAQ:VIRT) are both financials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Curo Group and Virtu Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Curo Group 0 0 5 0 3.00
Virtu Financial 1 4 1 0 2.00

Curo Group currently has a consensus price target of $20.50, suggesting a potential upside of 17.14%. Virtu Financial has a consensus price target of $18.17, suggesting a potential downside of 36.15%. Given Curo Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Curo Group is more favorable than Virtu Financial.

Dividends

Virtu Financial pays an annual dividend of $0.96 per share and has a dividend yield of 3.4%. Curo Group does not pay a dividend. Virtu Financial pays out 436.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

29.7% of Curo Group shares are owned by institutional investors. Comparatively, 48.2% of Virtu Financial shares are owned by institutional investors. 69.9% of Virtu Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Curo Group and Virtu Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Curo Group $963.63 million 0.81 $49.15 million $1.10 15.91
Virtu Financial $1.02 billion 5.20 $17.33 million $0.22 129.32

Curo Group has higher earnings, but lower revenue than Virtu Financial. Curo Group is trading at a lower price-to-earnings ratio than Virtu Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Curo Group and Virtu Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Curo Group N/A N/A N/A
Virtu Financial 1.69% 12.23% 1.67%

Summary

Virtu Financial beats Curo Group on 9 of the 15 factors compared between the two stocks.

Curo Group Company Profile

CURO Group Holdings Corp. is a technology enabled and diversified consumer finance company. The Company operates in the United States under two principal brands, Speedy Cash and Rapid Cash, and Avio Credit. In the United Kingdom, the Company operates online as Wage Day Advance and Juo Loans. The Company has three reportable operating segments: the United States, Canada and the United Kingdom. The Company offers a broad range of consumer finance products, including Unsecured Installment Loans, Secured Installment Loans, Open-End Loans and Single-Pay Loans.

Virtu Financial Company Profile

Virtu Financial, Inc. is a holding company. The Company is a technology-enabled market maker and liquidity provider to the financial markets across the world. It is engaged in buying or selling a range of securities and other financial instruments and earning small bid/ask spreads across various transactions. It has a single, multi-asset, multi-currency technology platform, through which it provides quotations to buyers and sellers in equities, commodities, currencies, options, fixed income and other securities on exchanges, markets and liquidity pools in various countries around the world. It makes markets in a range of different assets classes, such as Americas Equities; Europe, the Middle East and Africa (EMEA) Equities; Asia Pacific (APAC) Equities; Global Commodities; Global Currencies, and Options, Fixed Income and Other Securities. It makes markets for global banks, brokers and other intermediaries, and indirectly provides services to retail and institutional investors.

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