Financial Review: Capital One Financial (NYSE:COF) and EZCORP (NASDAQ:EZPW)

Capital One Financial (NYSE:COF) and EZCORP (NASDAQ:EZPW) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Profitability

This table compares Capital One Financial and EZCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital One Financial	N/A	10.01%	1.40%
EZCORP	7.96%	11.85%	6.13%

Volatility and Risk

Capital One Financial has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, EZCORP has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Institutional & Insider Ownership

89.8% of Capital One Financial shares are held by institutional investors. Comparatively, 99.8% of EZCORP shares are held by institutional investors. 1.3% of Capital One Financial shares are held by company insiders. Comparatively, 2.1% of EZCORP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Capital One Financial and EZCORP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital One Financial	0	4	13	3	2.95
EZCORP	0	2	2	1	2.80

Capital One Financial currently has a consensus price target of $239.44, suggesting a potential upside of 4.96%. EZCORP has a consensus price target of $18.50, suggesting a potential upside of 4.40%. Given Capital One Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Capital One Financial is more favorable than EZCORP.

Earnings and Valuation

This table compares Capital One Financial and EZCORP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital One Financial	$42.75 billion	3.41	$4.75 billion	$1.95	116.99
EZCORP	$1.23 billion	0.88	$83.10 million	$1.28	13.84

Capital One Financial has higher revenue and earnings than EZCORP. EZCORP is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Capital One Financial beats EZCORP on 10 of the 15 factors compared between the two stocks.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.

About EZCORP

EZCORP, Inc. provides pawn services in the United States and Latin America. The company operates through three segments: U.S. Pawn, Latin America Pawn, and Other Investments. The company offers pawn loans collateralized by tangible personal property, jewelry, consumer electronics, tools, sporting goods, and musical instruments. It also retails merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers. In addition, the company provides EZ+, a web-based application that allow customers to manage their pawn transactions, layaways, and loyalty rewards online. Further, it operates under the EZPAWN, Value Pawn & Jewelry, Empeño Fácil, Cash Apoyo Efectivo, GuatePrenda, and MaxiEfectivo brands. EZCORP, Inc. was incorporated in 1989 and is headquartered in Austin, Texas.