EZCORP (NASDAQ: EZPW) and TPG RE Finance Trust (NASDAQ:TRTX) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

89.4% of EZCORP shares are held by institutional investors. 2.1% of EZCORP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for EZCORP and TPG RE Finance Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EZCORP 0 3 1 0 2.25
TPG RE Finance Trust 0 2 3 0 2.60

EZCORP currently has a consensus price target of $10.00, suggesting a potential upside of 4.17%. TPG RE Finance Trust has a consensus price target of $21.20, suggesting a potential upside of 6.64%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, analysts plainly believe TPG RE Finance Trust is more favorable than EZCORP.

Valuation & Earnings

This table compares EZCORP and TPG RE Finance Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EZCORP $750.47 million 0.69 $67.71 million $0.44 21.82
TPG RE Finance Trust N/A N/A N/A N/A N/A

EZCORP has higher revenue and earnings than TPG RE Finance Trust.

Profitability

This table compares EZCORP and TPG RE Finance Trust’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%
TPG RE Finance Trust 48.73% 10.27% 3.73%

Summary

TPG RE Finance Trust beats EZCORP on 6 of the 9 factors compared between the two stocks.

EZCORP Company Profile

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.

TPG RE Finance Trust Company Profile

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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