World Acceptance (NASDAQ:WRLD) vs. Mr. Cooper Group (NASDAQ:COOP) Head-To-Head Contrast

World Acceptance (NASDAQ:WRLD) and Mr. Cooper Group (NASDAQ:COOP) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares World Acceptance and Mr. Cooper Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
World Acceptance	15.89%	21.02%	8.51%
Mr. Cooper Group	25.93%	15.27%	4.17%

Earnings and Valuation

This table compares World Acceptance and Mr. Cooper Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Acceptance	$564.84 million	1.64	$89.74 million	$16.36	10.68
Mr. Cooper Group	$3.04 billion	3.18	$669.00 million	$8.80	17.15

Mr. Cooper Group has higher revenue and earnings than World Acceptance. World Acceptance is trading at a lower price-to-earnings ratio than Mr. Cooper Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for World Acceptance and Mr. Cooper Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Acceptance	0	1	0	0	2.00
Mr. Cooper Group	0	3	5	0	2.63

World Acceptance presently has a consensus target price of $10.00, indicating a potential downside of 94.28%. Mr. Cooper Group has a consensus target price of $133.29, indicating a potential downside of 11.70%. Given Mr. Cooper Group’s stronger consensus rating and higher possible upside, analysts clearly believe Mr. Cooper Group is more favorable than World Acceptance.

Volatility and Risk

World Acceptance has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Mr. Cooper Group has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Institutional and Insider Ownership

83.6% of World Acceptance shares are owned by institutional investors. Comparatively, 89.8% of Mr. Cooper Group shares are owned by institutional investors. 43.2% of World Acceptance shares are owned by company insiders. Comparatively, 1.7% of Mr. Cooper Group shares are owned 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.

Summary

Mr. Cooper Group beats World Acceptance on 9 of the 14 factors compared between the two stocks.

About World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.

About Mr. Cooper Group

Mr. Cooper Group Inc., together with its subsidiaries, operates as a non-bank servicer of residential mortgage loans in the United States. The company operates through Servicing and Originations segments. The Servicing segment performs activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans, performing collections, foreclosures, and the sale of real estate owned. The Originations segment originates residential mortgage loans through its direct-to-consumer and correspondent channels. The company provides its services under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.