World Acceptance (NASDAQ: WRLD) and PROVIDENT Finl/S (OTCMKTS:FPLPY) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
This is a breakdown of current recommendations for World Acceptance and PROVIDENT Finl/S, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PROVIDENT Finl/S pays an annual dividend of $0.54 per share and has a dividend yield of 6.3%. World Acceptance does not pay a dividend. PROVIDENT Finl/S pays out 66.7% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares World Acceptance and PROVIDENT Finl/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|World Acceptance||$548.71 million||2.00||$53.69 million||$7.71||15.60|
|PROVIDENT Finl/S||$1.54 billion||0.83||-$173.21 million||$0.81||10.59|
World Acceptance has higher earnings, but lower revenue than PROVIDENT Finl/S. PROVIDENT Finl/S is trading at a lower price-to-earnings ratio than World Acceptance, indicating that it is currently the more affordable of the two stocks.
This table compares World Acceptance and PROVIDENT Finl/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
World Acceptance has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, PROVIDENT Finl/S has a beta of -2.51, indicating that its share price is 351% less volatile than the S&P 500.
Institutional and Insider Ownership
93.1% of World Acceptance shares are owned by institutional investors. Comparatively, 0.0% of PROVIDENT Finl/S shares are owned by institutional investors. 27.3% of World Acceptance shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
World Acceptance beats PROVIDENT Finl/S on 12 of the 14 factors compared between the two stocks.
About World Acceptance
World Acceptance Corporation engages in small-loan consumer finance business. The company offers short-term small and medium-term larger installment loans, as well as related credit insurance and ancillary products and services to individuals. It also provides automobile club memberships to its borrowers; and income tax return preparation and electronic filing services. In addition, the company markets and sells credit life, credit accident and health, credit property, and unemployment insurance in connection with its loans; and develops and provides computer software solutions for the consumer finance industry. It serves individuals with limited access to other sources of consumer credit, including banks, credit unions, other consumer finance businesses, and credit card lenders. As of May 31, 2017, the company operated 1,327 offices in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, and Wisconsin, as well as Mexico. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.
About PROVIDENT Finl/S
Provident Financial plc provides personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland. The company offers credit cards; consumer credit, including unsecured and online instalment loans; and finance for cars and light commercial vehicles. It serves 2.5 million customers through its network of branches, call centers, and Websites. The company was founded in 1880 and is headquartered in Bradford, the United Kingdom.
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