Financial Comparison: Cash America International (CSH) & LendingTree (TREE)
Cash America International (NYSE: CSH) and LendingTree (NASDAQ:TREE) are both financials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
This is a summary of current ratings and target prices for Cash America International and LendingTree, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cash America International||0||0||1||0||3.00|
Cash America International currently has a consensus target price of $57.00, suggesting a potential upside of 35.07%. LendingTree has a consensus target price of $188.91, suggesting a potential downside of 24.32%. Given Cash America International’s higher possible upside, research analysts clearly believe Cash America International is more favorable than LendingTree.
Cash America International pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. LendingTree does not pay a dividend. Cash America International pays out 27.1% of its earnings in the form of a dividend. Cash America International has raised its dividend for 2 consecutive years.
Earnings and Valuation
This table compares Cash America International and LendingTree’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cash America International||N/A||N/A||N/A||$1.18||35.76|
|LendingTree||$480.69 million||6.23||$73.26 million||$2.14||116.64|
LendingTree has higher revenue and earnings than Cash America International. Cash America International is trading at a lower price-to-earnings ratio than LendingTree, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Cash America International has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, LendingTree has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.
Insider and Institutional Ownership
71.7% of LendingTree shares are owned by institutional investors. 21.9% of LendingTree shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Cash America International and LendingTree’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cash America International||0.87%||0.86%||0.64%|
LendingTree beats Cash America International on 10 of the 13 factors compared between the two stocks.
About Cash America International
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.
LendingTree, Inc. (LendingTree) is engaged in operating an online loan marketplace for consumers seeking loans and other credit-based offerings. The Company’s online marketplace provides consumers with access to product offerings from various lenders, which it refers to as Network Lenders, including mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, personal loans, student loans, small business loans and other related offerings. In addition, the Company offers tools and resources, including free credit scores that facilitate comparison shopping for these loans and other credit-based offerings. The Company offers its products in categories, including mortgage products and non-mortgage products. Its mortgage products category includes its purchase and refinance products. Its non-mortgage products include lending products and other products.
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