Mr. Cooper Group (NASDAQ:COOP – Get Free Report) and World Acceptance (NASDAQ:WRLD – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Profitability
This table compares Mr. Cooper Group and World Acceptance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mr. Cooper Group | 25.93% | 15.27% | 4.17% |
| World Acceptance | 15.89% | 21.02% | 8.51% |
Analyst Ratings
This is a summary of recent ratings for Mr. Cooper Group and World Acceptance, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mr. Cooper Group | 0 | 3 | 5 | 0 | 2.63 |
| World Acceptance | 0 | 1 | 0 | 0 | 2.00 |
Valuation and Earnings
This table compares Mr. Cooper Group and World Acceptance”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mr. Cooper Group | $3.04 billion | 3.18 | $669.00 million | $8.80 | 17.15 |
| World Acceptance | $564.84 million | 1.64 | $89.74 million | $16.36 | 10.68 |
Mr. Cooper Group has higher revenue and earnings than World Acceptance. World Acceptance is trading at a lower price-to-earnings ratio than Mr. Cooper Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
89.8% of Mr. Cooper Group shares are held by institutional investors. Comparatively, 83.6% of World Acceptance shares are held by institutional investors. 1.7% of Mr. Cooper Group shares are held by company insiders. Comparatively, 43.2% of World Acceptance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Mr. Cooper Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, World Acceptance has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Summary
Mr. Cooper Group beats World Acceptance on 9 of the 14 factors compared between the two stocks.
About Mr. Cooper Group
Mr. Cooper Group Inc., together with its subsidiaries, operates as a non-bank servicer of residential mortgage loans in the United States. The company operates through Servicing and Originations segments. The Servicing segment performs activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans, performing collections, foreclosures, and the sale of real estate owned. The Originations segment originates residential mortgage loans through its direct-to-consumer and correspondent channels. The company provides its services under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.
About World Acceptance
World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.
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