EZCORP (NASDAQ: EZPW) and Regional Management Corp. (NYSE:RM) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitabiliy.

Analyst Ratings

This is a summary of recent recommendations for EZCORP and Regional Management Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EZCORP 0 2 2 0 2.50
Regional Management Corp. 0 4 1 0 2.20

EZCORP presently has a consensus target price of $9.92, suggesting a potential upside of 9.58%. Regional Management Corp. has a consensus target price of $26.00, suggesting a potential upside of 9.66%. Given Regional Management Corp.’s higher probable upside, analysts clearly believe Regional Management Corp. is more favorable than EZCORP.

Insider and Institutional Ownership

86.1% of EZCORP shares are owned by institutional investors. Comparatively, 88.1% of Regional Management Corp. shares are owned by institutional investors. 2.1% of EZCORP shares are owned by company insiders. Comparatively, 9.5% of Regional Management Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares EZCORP and Regional Management Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EZCORP $750.47 million 0.65 $67.71 million $0.44 20.57
Regional Management Corp. $246.92 million 1.12 $68.46 million $2.28 10.40

Regional Management Corp. has higher revenue, but lower earnings than EZCORP. Regional Management Corp. is trading at a lower price-to-earnings ratio than EZCORP, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

EZCORP has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Regional Management Corp. has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares EZCORP and Regional Management Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EZCORP 3.16% 3.65% 2.29%
Regional Management Corp. 10.37% 12.98% 3.88%

Summary

Regional Management Corp. beats EZCORP on 9 of the 14 factors compared between the two stocks.

About EZCORP

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.

About Regional Management Corp.

Regional Management Corp. is a diversified consumer finance company. The Company provides an array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders. Its products include small loans, large loans, automobile loans, retail loans, and optional payment and collateral protection insurance products. It offers small loans ranging from $500 to $2,500, through its branches. It offers large installment loans with cash proceeds to the customer ranging from $2,501 to $20,000. As of December 31, 2016, automobile loans were offered in amounts up to $27,500. As of December 31, 2016, retail loans were indirect installment loans structured as retail installment sales contracts that were offered in amounts of up to $7,500. Optional Payment and Collateral Protection Insurance Products offer customers a number of optional payment and collateral protection insurance products.

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