World Acceptance Corporation (NASDAQ: WRLD) is one of 27 public companies in the “Consumer Lending” industry, but how does it compare to its peers? We will compare World Acceptance Corporation to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional & Insider Ownership

91.9% of World Acceptance Corporation shares are held by institutional investors. Comparatively, 77.5% of shares of all “Consumer Lending” companies are held by institutional investors. 27.3% of World Acceptance Corporation shares are held by insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares World Acceptance Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
World Acceptance Corporation $533.56 million $136.07 million 10.14
World Acceptance Corporation Competitors $564.84 million $92.07 million 16.52

World Acceptance Corporation’s peers have higher revenue, but lower earnings than World Acceptance Corporation. World Acceptance Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares World Acceptance Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Acceptance Corporation 13.13% 15.75% 8.48%
World Acceptance Corporation Competitors -43.97% -47.67% -2.92%

Analyst Ratings

This is a summary of current recommendations and price targets for World Acceptance Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Acceptance Corporation 3 0 0 0 1.00
World Acceptance Corporation Competitors 192 746 1067 58 2.48

World Acceptance Corporation currently has a consensus price target of $52.33, indicating a potential downside of 35.31%. As a group, “Consumer Lending” companies have a potential upside of 60.51%. Given World Acceptance Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe World Acceptance Corporation has less favorable growth aspects than its peers.

Volatility & Risk

World Acceptance Corporation has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500. Comparatively, World Acceptance Corporation’s peers have a beta of 1.48, indicating that their average share price is 48% more volatile than the S&P 500.

Summary

World Acceptance Corporation beats its peers on 7 of the 13 factors compared.

World Acceptance Corporation Company Profile

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.

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