Cash America International (NYSE: CSH) and TPG RE Finance Trust (NYSE:TRTX) are both small-cap financials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Insider and Institutional Ownership
26.4% of TPG RE Finance Trust shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Cash America International pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. TPG RE Finance Trust pays an annual dividend of $0.71 per share and has a dividend yield of 3.7%. Cash America International pays out 27.1% of its earnings in the form of a dividend. TPG RE Finance Trust pays out 48.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TPG RE Finance Trust has raised its dividend for 3 consecutive years. TPG RE Finance Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Cash America International and TPG RE Finance Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cash America International||0.87%||0.86%||0.64%|
|TPG RE Finance Trust||N/A||N/A||N/A|
This is a breakdown of recent ratings and price targets for Cash America International and TPG RE Finance Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cash America International||0||0||0||0||N/A|
|TPG RE Finance Trust||0||2||3||0||2.60|
TPG RE Finance Trust has a consensus price target of $21.20, indicating a potential upside of 11.93%. Given TPG RE Finance Trust’s higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than Cash America International.
Earnings and Valuation
This table compares Cash America International and TPG RE Finance Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cash America International||N/A||N/A||N/A||$1.18||35.76|
|TPG RE Finance Trust||$92.39 million||12.22||$69.96 million||$1.47||12.88|
TPG RE Finance Trust has higher revenue and earnings than Cash America International. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than Cash America International, indicating that it is currently the more affordable of the two stocks.
TPG RE Finance Trust beats Cash America International on 7 of the 12 factors compared between the two stocks.
About Cash America International
Cash America International, Inc. provides specialty financial services to individuals through its storefront lending and franchised check cashing locations. The Company offers secured non-recourse loans, referred to as pawn loans, as its primary line of business. The Company is also engaged in originating, arranging, guaranteeing or purchasing consumer loans in some of its locations. The Company also offers check cashing and other ancillary products and services, including money orders, wire transfers and auto insurance. The Company’s franchised check cashing business offers check cashing services through its franchised check cashing centers. The Company provides its services in the United States under the names Cash America Pawn, SuperPawn, Cash America Payday Advance, Cashland and Mr. Payroll. The Company is engaged in pawn lending activities, merchandise disposition activities, consumer loan activities and check cashing and other financial services.
About TPG RE Finance Trust
TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.
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