Santander Consumer USA (NYSE:SC) and Mr. Amazing Loans (OTC:MRAL) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Santander Consumer USA and Mr. Amazing Loans, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Santander Consumer USA 0 7 7 0 2.50
Mr. Amazing Loans 0 1 0 0 2.00

Santander Consumer USA presently has a consensus price target of $22.85, indicating a potential upside of 22.96%. Mr. Amazing Loans has a consensus price target of $0.31, indicating a potential upside of 57.92%. Given Mr. Amazing Loans’ higher probable upside, analysts plainly believe Mr. Amazing Loans is more favorable than Santander Consumer USA.

Dividends

Santander Consumer USA pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. Mr. Amazing Loans does not pay a dividend. Santander Consumer USA pays out 46.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.5% of Mr. Amazing Loans shares are owned by institutional investors. 0.1% of Santander Consumer USA shares are owned by insiders. Comparatively, 39.5% of Mr. Amazing Loans shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Santander Consumer USA and Mr. Amazing Loans’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Santander Consumer USA 20.54% 13.25% 2.22%
Mr. Amazing Loans -275.74% -85.92% -83.89%

Valuation & Earnings

This table compares Santander Consumer USA and Mr. Amazing Loans’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Santander Consumer USA $6.56 billion 1.02 $1.19 billion $1.74 10.68
Mr. Amazing Loans $1.69 million 2.03 -$5.50 million N/A N/A

Santander Consumer USA has higher revenue and earnings than Mr. Amazing Loans.

Volatility and Risk

Santander Consumer USA has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Mr. Amazing Loans has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Summary

Santander Consumer USA beats Mr. Amazing Loans on 9 of the 14 factors compared between the two stocks.

Santander Consumer USA Company Profile

Santander Consumer USA Holdings Inc., a specialized consumer finance company, provides vehicle finance and third-party servicing in the United States. Its products and services include retail installment contracts and vehicle leases, as well as dealer loans for inventory, construction, real estate, working capital, and revolving lines of credit. The company also offers financial products and services related to motorcycles, recreational vehicles, and marine vehicles; originates vehicle loans through a Web-based direct lending program; purchases vehicle retail installment contracts from other lenders; and services automobile, and recreational and marine vehicle portfolios for other lenders. In addition, it provides private-label credit cards and other consumer finance products, as well as point-of-sale financing. The company was founded in 1995 and is headquartered in Dallas, Texas. Santander Consumer USA Holdings Inc. is a subsidiary of Santander Holdings USA, Inc.

Mr. Amazing Loans Company Profile

Mr. Amazing Loans Corporation, a consumer finance company, provides unsecured online consumer loans to individuals in the United States. It offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 20 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, Virginia, and Wisconsin. The company was formerly known as IEG Holdings Corporation. Mr. Amazing Loans Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.

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