Mr. Cooper Group vs. EZCORP: A Detailed Investment Comparison

Investors seeking insights into the financial performance of two prominent companies, Mr. Cooper Group and EZCORP, can benefit from a comparative analysis of their fundamentals. This assessment evaluates aspects such as profitability, earnings, institutional ownership, and analyst recommendations, providing a clearer picture of their investment potential.

Financial Performance Overview

In terms of gross revenue, Mr. Cooper Group demonstrates a significant advantage, generating $2.23 billion in revenue compared to EZCORP’s $1.16 billion. The earnings per share (EPS) figures also reflect this disparity, with Mr. Cooper reporting an EPS of $8.74 versus EZCORP’s $1.28. The price-to-earnings (P/E) ratio for Mr. Cooper stands at 24.29, while EZCORP’s more modest 14.66 suggests it may be a more affordable stock option at present.

Profitability metrics further underline the differences between the two companies. Mr. Cooper boasts a net margin of 25.38%, alongside a return on equity of 15.66% and a return on assets of 4.22%. In contrast, EZCORP’s net margin is significantly lower at 7.96%, with corresponding returns on equity and assets of 11.85% and 6.13%, respectively.

Risk and Institutional Ownership

Analyzing volatility, Mr. Cooper Group has a beta of 0.98, which indicates that its stock is slightly less volatile than the broader market. Conversely, EZCORP’s beta of 0.63 suggests it is 37% less volatile than the S&P 500, potentially appealing to risk-averse investors.

Institutional ownership can signify confidence in a company’s long-term performance. Currently, 89.8% of Mr. Cooper Group shares are held by institutional investors, while an impressive 99.8% of EZCORP shares fall into this category. Insider ownership is also notable, with 1.7% of Mr. Cooper’s shares held by insiders compared to 2.1% at EZCORP.

Analyst Ratings and Future Prospects

Analyst ratings offer further insight into investor sentiment. According to MarketBeat.com, Mr. Cooper Group has received no sell ratings, four hold ratings, and five buy ratings, resulting in an average rating score of 2.44. EZCORP, on the other hand, has received two sell ratings, two hold ratings, and one buy rating, culminating in a higher average rating score of 2.80.

The consensus target price for Mr. Cooper is set at $140.38, indicating a potential downside of 33.87%. In contrast, EZCORP’s target price of $18.50 reflects a lower potential downside of 1.39%, suggesting that analysts view EZCORP as having a more favorable outlook.

In conclusion, while Mr. Cooper Group excels in revenue and profitability metrics, EZCORP presents a more attractive valuation and analyst sentiment. Investors should weigh these factors carefully based on their risk tolerance and investment goals. Each company has its strengths, making them worthy of consideration in a diversified investment portfolio.

Understanding the nuances of these two finance companies can equip investors with the knowledge needed to make informed decisions in the dynamic financial market.