World Acceptance Corporation (NASDAQ: WRLD) is one of 27 public companies in the “Consumer Lending” industry, but how does it contrast to its rivals? We will compare World Acceptance Corporation to related companies based on the strength of its dividends, valuation, earnings, profitability, risk, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

92.0% of World Acceptance Corporation shares are owned by institutional investors. Comparatively, 77.5% of shares of all “Consumer Lending” companies are owned by institutional investors. 27.3% of World Acceptance Corporation shares are owned by company insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares World Acceptance Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
World Acceptance Corporation $533.56 million $136.07 million 10.58
World Acceptance Corporation Competitors $564.84 million $92.07 million 16.75

World Acceptance Corporation’s rivals have higher revenue, but lower earnings than World Acceptance Corporation. World Acceptance Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares World Acceptance Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Acceptance Corporation 13.13% 15.75% 8.48%
World Acceptance Corporation Competitors -28.40% -17.29% 0.55%

Analyst Recommendations

This is a summary of current recommendations and price targets for World Acceptance Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Acceptance Corporation 3 0 0 0 1.00
World Acceptance Corporation Competitors 163 654 1045 51 2.51

World Acceptance Corporation currently has a consensus target price of $59.00, suggesting a potential downside of 30.13%. As a group, “Consumer Lending” companies have a potential upside of 49.07%. Given World Acceptance Corporation’s rivals stronger consensus rating and higher possible upside, analysts plainly believe World Acceptance Corporation has less favorable growth aspects than its rivals.

Volatility & Risk

World Acceptance Corporation has a beta of 2.39, suggesting that its share price is 139% more volatile than the S&P 500. Comparatively, World Acceptance Corporation’s rivals have a beta of 1.49, suggesting that their average share price is 49% more volatile than the S&P 500.

Summary

World Acceptance Corporation beats its rivals on 7 of the 13 factors compared.

About World Acceptance Corporation

World Acceptance Corporation operates a small-loan consumer finance business in 15 states and Mexico as of March 31, 2016. The Company offers short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. The Company offers standardized installment loans generally between $300 and $4,000 through 1,339 branches in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, Wisconsin and Mexico as of March 31, 2016. The Company generally serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses and credit card lenders. In the United States branches, the Company also offers income tax return preparation services to its loan customers and other individuals.

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