Critical Review: Enova International (ENVA) & Santander Consumer USA Holdings (NYSE:SC)
Santander Consumer USA Holdings (NYSE: SC) and Enova International (NYSE:ENVA) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitabiliy and institutional ownership.
Valuation & Earnings
This table compares Santander Consumer USA Holdings and Enova International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Santander Consumer USA Holdings||$3.28 billion||1.46||$700.87 million||$1.95||6.81|
|Enova International||$696.27 million||0.79||$38.51 million||$1.15||14.22|
Santander Consumer USA Holdings has higher revenue and earnings than Enova International. Santander Consumer USA Holdings is trading at a lower price-to-earnings ratio than Enova International, indicating that it is currently the more affordable of the two stocks.
This table compares Santander Consumer USA Holdings and Enova International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Santander Consumer USA Holdings||10.73%||13.59%||1.81%|
This is a breakdown of current ratings for Santander Consumer USA Holdings and Enova International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Santander Consumer USA Holdings||0||7||2||0||2.22|
Santander Consumer USA Holdings currently has a consensus price target of $15.07, suggesting a potential upside of 13.49%. Enova International has a consensus price target of $14.30, suggesting a potential downside of 12.54%. Given Santander Consumer USA Holdings’ higher possible upside, equities research analysts plainly believe Santander Consumer USA Holdings is more favorable than Enova International.
Insider and Institutional Ownership
93.2% of Santander Consumer USA Holdings shares are owned by institutional investors. Comparatively, 92.2% of Enova International shares are owned by institutional investors. 0.4% of Santander Consumer USA Holdings shares are owned by insiders. Comparatively, 1.6% of Enova International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Santander Consumer USA Holdings has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Enova International has a beta of 3.44, indicating that its stock price is 244% more volatile than the S&P 500.
Santander Consumer USA Holdings Company Profile
Santander Consumer USA Holdings Inc. is the holding company for Santander Consumer USA Inc., and subsidiaries, a consumer finance company focused on vehicle finance and third party servicing. The Company operates through Consumer Finance segment. Its Consumer Finance business is focused on vehicle financial products and services, including retail installment contracts, vehicle leases, and dealer loans, as well as financial products and services related to motorcycles, recreational vehicles (RVs), and marine vehicles. It also includes its personal loan and point-of-sale financing operations. The Company’s primary business is the indirect origination and securitization of retail installment contracts, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. The Company offers auto financing products and services to Fiat Chrysler Automobiles US LLC (FCA) customers and dealers under the Chrysler Capital brand.
Enova International Company Profile
Enova International, Inc. is a technology and analytics company. The Company provides online financial services. As of December 31, 2016, the Company offered or arranged loans to consumers in 33 states in the United States and in the United Kingdom and Brazil. As of December 31, 2016, it also offered financing to small businesses in all 50 states and Washington D.C. in the United States. The Company provides online financial services to non-prime credit consumers and small businesses in the United States, United Kingdom, and Brazil. Its customers include small businesses, which have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. The Company’s financing products include short-term loans, line of credit accounts, installment loans and receivables purchase agreements (RPAs).
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