Analyzing Dave (NASDAQ:DAVEW) and Encore Capital Group (NASDAQ:ECPG)

Dave (NASDAQ:DAVEW) and Encore Capital Group (NASDAQ:ECPG) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Dave and Encore Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dave	0	0	0	0	0.00
Encore Capital Group	0	0	5	1	3.17

Encore Capital Group has a consensus price target of $89.75, suggesting a potential downside of 12.74%. Given Encore Capital Group’s stronger consensus rating and higher possible upside, analysts plainly believe Encore Capital Group is more favorable than Dave.

Profitability

This table compares Dave and Encore Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dave	N/A	N/A	N/A
Encore Capital Group	15.86%	29.83%	5.58%

Earnings and Valuation

This table compares Dave and Encore Capital Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dave	$643.65 million	N/A	N/A	N/A	N/A
Encore Capital Group	$1.77 billion	1.23	$256.83 million	$13.21	7.79

Encore Capital Group has higher revenue and earnings than Dave.

Summary

Encore Capital Group beats Dave on 8 of the 8 factors compared between the two stocks.

About Dave

Dave Inc. provides a suite of financial products and services through its financial services platform. The company offers Budget, personal financial management tool that helps members with budgeting, and managing income and expenses; ExtraCash, a short-term liquidity alternative, which allows members to advance funds to their account through automated clearing house network and avoid a fee; Side Hustle, a job application portal to find supplemental or temporary work; and Surveys, which allows member to take paid surveys within the Dave mobile application. It also provides Dave Banking, a digital checking and demand deposit account. The company was founded in 2015 and is headquartered in Los Angeles, California.

About Encore Capital Group

Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.