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

Profitability

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

Net Margins Return on Equity Return on Assets
Virtu Financial 0.13% 11.56% 1.60%
Curo Group N/A N/A N/A

Institutional and Insider Ownership

26.8% of Virtu Financial shares are held by institutional investors. Comparatively, 29.7% of Curo Group shares are held by institutional investors. 69.9% of Virtu Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virtu Financial 0 5 1 0 2.17
Curo Group 0 0 5 0 3.00

Virtu Financial currently has a consensus target price of $17.83, indicating a potential downside of 36.20%. Curo Group has a consensus target price of $20.50, indicating a potential upside of 23.42%. Given Curo Group’s stronger consensus rating and higher probable upside, 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 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Virtu Financial $702.27 million 7.45 $32.98 million $0.16 174.70
Curo Group $963.63 million 0.77 $49.15 million N/A N/A

Curo Group has higher revenue and earnings than Virtu Financial.

Summary

Curo Group beats Virtu Financial on 7 of the 13 factors compared between the two stocks.

About Virtu Financial

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.

About Curo Group

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.

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