Financial Review: EZCORP (EZPW) and Cash America International (CSH)

EZCORP (NASDAQ: EZPW) and Cash America International (NYSE:CSH) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Institutional and Insider Ownership

89.4% of EZCORP shares are owned by institutional investors. 2.1% of EZCORP shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Cash America International pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. EZCORP does not pay a dividend. Cash America International pays out 27.1% of its earnings in the form of a dividend. EZCORP has raised its dividend for 2 consecutive years.

Profitability

This table compares EZCORP and Cash America International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EZCORP 3.16% 3.65% 2.29%
Cash America International 0.87% 0.86% 0.64%

Valuation and Earnings

This table compares EZCORP and Cash America International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EZCORP $750.47 million 0.68 $67.71 million $0.44 21.36
Cash America International N/A N/A N/A $1.18 35.76

EZCORP has higher revenue and earnings than Cash America International. EZCORP is trading at a lower price-to-earnings ratio than Cash America International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

EZCORP has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, Cash America International has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for EZCORP and Cash America International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EZCORP 0 3 1 0 2.25
Cash America International 0 0 1 0 3.00

EZCORP currently has a consensus price target of $9.25, suggesting a potential downside of 1.60%. Cash America International has a consensus price target of $57.00, suggesting a potential upside of 35.07%. Given Cash America International’s stronger consensus rating and higher probable upside, analysts plainly believe Cash America International is more favorable than EZCORP.

Summary

EZCORP beats Cash America International on 9 of the 13 factors compared between the two stocks.

EZCORP Company Profile

EZCORP, Inc. provides pawn loans in the United States and Mexico, and consumer loans in Mexico. The Company operates through three segments: U.S. Pawn, which includes its EZPAWN, Value Pawn & Jewelry and other branded pawn operations in the United States; Mexico Pawn, which includes its Empeno Facil pawn operations and cash converters buy/sell store operations in Mexico, and Other International, which includes its CASHMAX financial services operations in Canada and its equity interest in Cash Converters International. It offers pawn loans, which are non-recourse loans, collateralized by tangible property, and it sells merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers at its pawn stores.

Cash America International Company Profile

Cash America International, Inc. provides specialty financial services to individuals through its storefront lending and franchised check cashing locations. The Company offers secured non-recourse loans, referred to as pawn loans, as its primary line of business. The Company is also engaged in originating, arranging, guaranteeing or purchasing consumer loans in some of its locations. The Company also offers check cashing and other ancillary products and services, including money orders, wire transfers and auto insurance. The Company’s franchised check cashing business offers check cashing services through its franchised check cashing centers. The Company provides its services in the United States under the names Cash America Pawn, SuperPawn, Cash America Payday Advance, Cashland and Mr. Payroll. The Company is engaged in pawn lending activities, merchandise disposition activities, consumer loan activities and check cashing and other financial services.

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