Reviewing Enova International (ENVA) and World Acceptance (WRLD)

Enova International (NYSE: ENVA) and World Acceptance (NASDAQ:WRLD) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Enova International and World Acceptance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enova International 0 0 4 0 3.00
World Acceptance 3 0 0 0 1.00

Enova International presently has a consensus target price of $27.00, indicating a potential downside of 22.86%. World Acceptance has a consensus target price of $70.67, indicating a potential downside of 37.65%. Given Enova International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Enova International is more favorable than World Acceptance.

Profitability

This table compares Enova International and World Acceptance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enova International 4.78% 20.25% 5.21%
World Acceptance 9.78% 13.82% 8.05%

Earnings & Valuation

This table compares Enova International and World Acceptance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enova International $843.74 million 1.41 $29.24 million $1.15 30.43
World Acceptance $548.71 million 1.88 $53.68 million $7.71 14.70

World Acceptance has lower revenue, but higher earnings than Enova International. World Acceptance is trading at a lower price-to-earnings ratio than Enova International, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Enova International has a beta of 2.85, indicating that its stock price is 185% more volatile than the S&P 500. Comparatively, World Acceptance has a beta of 2.72, indicating that its stock price is 172% more volatile than the S&P 500.

Institutional and Insider Ownership

92.3% of Enova International shares are held by institutional investors. Comparatively, 93.7% of World Acceptance shares are held by institutional investors. 5.6% of Enova International shares are held by company insiders. Comparatively, 27.3% of World Acceptance shares are held by company 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.

About Enova International

Enova International, Inc., a technology and analytics company, provides online financial services. The company offers short-term consumer loans; line of credit accounts; installment loans; receivables purchase agreements; CSO programs, including credit-related services, such as arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs comprising technology, loan servicing, and marketing services to the bank, as well as Enova Decisions, an analytics as a service that enables companies to take decisions about their customers through existing tools and technologies. It offers loans to consumers under the names CashNetUSA and NetCredit in the United States; QuickQuid, Pounds to Pocket, and On Stride Financial names in the United Kingdom; and Simplic name in Brazil. The company also offers financing to small businesses under the names Headway Capital and The Business Backer in the United States. Enova International, Inc. was founded in 2011 and is headquartered in Chicago, Illinois.

About World Acceptance

World Acceptance Corporation engages in small-loan consumer finance business. The company offers short-term small and medium-term larger installment loans, as well as related credit insurance and ancillary products and services to individuals. It also provides automobile club memberships to its borrowers; and income tax return preparation and electronic filing services. In addition, the company markets and sells credit life, credit accident and health, credit property, and unemployment insurance in connection with its loans; and develops and provides computer software solutions for the consumer finance industry. It serves individuals with limited access to other sources of consumer credit, including banks, credit unions, other consumer finance businesses, and credit card lenders. As of May 31, 2017, the company operated 1,327 offices in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, and Wisconsin, as well as Mexico. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.

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