Vroom (NASDAQ:VRM – Get Free Report) and Enova International (NYSE:ENVA – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Earnings & Valuation
This table compares Vroom and Enova International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vroom | $10.09 million | 3.53 | -$7.96 million | ($11.12) | -0.61 |
| Enova International | $3.65 billion | 1.18 | $308.39 million | $14.52 | 12.09 |
Enova International has higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than Enova International, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Vroom has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Enova International has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Institutional and Insider Ownership
25.8% of Vroom shares are owned by institutional investors. Comparatively, 89.4% of Enova International shares are owned by institutional investors. 2.9% of Vroom shares are owned by insiders. Comparatively, 8.4% of Enova International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Vroom and Enova International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vroom | -32.38% | -47.65% | -5.59% |
| Enova International | 10.47% | 27.25% | 5.60% |
Analyst Recommendations
This is a summary of recent recommendations for Vroom and Enova International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
| Enova International | 0 | 1 | 8 | 0 | 2.89 |
Enova International has a consensus price target of $239.00, indicating a potential upside of 36.12%. Given Enova International’s stronger consensus rating and higher possible upside, analysts clearly believe Enova International is more favorable than Vroom.
Summary
Enova International beats Vroom on 12 of the 13 factors compared between the two stocks.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
About Enova International
Enova International, Inc., a technology and analytics company, provides online financial services in the United States, Brazil, and internationally. The company provides installment loans; line of credit accounts; CSO programs, including arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs, such as marketing services and loan servicing for near-prime unsecured consumer installment loan. It offers money transfer services. It markets its financing products under the CashNetUSA, NetCredit, OnDeck, Headway Capital, Simplic, and Pangea names. The company was founded in 2003 and is headquartered in Chicago, Illinois.
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