Financial Comparison: Enova International (ENVA) and Santander Consumer USA Holdings (SC)

Enova International (NYSE: ENVA) and Santander Consumer USA Holdings (NYSE:SC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, risk, valuation and institutional ownership.

Risk and Volatility

Enova International has a beta of 3.44, indicating that its share price is 244% more volatile than the S&P 500. Comparatively, Santander Consumer USA Holdings has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Valuation & Earnings

This table compares Enova International and Santander Consumer USA Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enova International $696.27 million 0.71 $41.86 million $1.25 11.76
Santander Consumer USA Holdings $3.28 billion 1.42 $700.87 million $1.95 6.65

Santander Consumer USA Holdings has higher revenue and earnings than Enova International. Santander Consumer USA Holdings is trading at a lower price-to-earnings ratio than Enova International, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.5% of Enova International shares are held by institutional investors. Comparatively, 93.1% of Santander Consumer USA Holdings shares are held by institutional investors. 1.6% of Enova International shares are held by insiders. Comparatively, 0.4% of Santander Consumer USA Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Enova International and Santander Consumer USA Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enova International 5.42% 16.46% 4.11%
Santander Consumer USA Holdings 10.73% 13.59% 1.81%

Analyst Recommendations

This is a breakdown of recent recommendations for Enova International and Santander Consumer USA Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enova International 0 2 4 0 2.67
Santander Consumer USA Holdings 0 7 3 0 2.30

Enova International presently has a consensus price target of $14.30, suggesting a potential downside of 2.72%. Santander Consumer USA Holdings has a consensus price target of $15.19, suggesting a potential upside of 17.19%. Given Santander Consumer USA Holdings’ higher possible upside, analysts plainly believe Santander Consumer USA Holdings is more favorable than Enova International.

Enova International Company Profile

Enova International, Inc. is a technology and analytics company. The Company provides online financial services. As of December 31, 2016, the Company offered or arranged loans to consumers in 33 states in the United States and in the United Kingdom and Brazil. As of December 31, 2016, it also offered financing to small businesses in all 50 states and Washington D.C. in the United States. The Company provides online financial services to non-prime credit consumers and small businesses in the United States, United Kingdom, and Brazil. Its customers include small businesses, which have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. The Company’s financing products include short-term loans, line of credit accounts, installment loans and receivables purchase agreements (RPAs).

Santander Consumer USA Holdings Company Profile

Santander Consumer USA Holdings Inc. is the holding company for Santander Consumer USA Inc., and subsidiaries, a consumer finance company focused on vehicle finance and third party servicing. The Company operates through Consumer Finance segment. Its Consumer Finance business is focused on vehicle financial products and services, including retail installment contracts, vehicle leases, and dealer loans, as well as financial products and services related to motorcycles, recreational vehicles (RVs), and marine vehicles. It also includes its personal loan and point-of-sale financing operations. The Company’s primary business is the indirect origination and securitization of retail installment contracts, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. The Company offers auto financing products and services to Fiat Chrysler Automobiles US LLC (FCA) customers and dealers under the Chrysler Capital brand.

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