Contrasting goeasy (OTCMKTS:EHMEF) and Western Union (NYSE:WU)

goeasy (OTCMKTS:EHMEF) and Western Union (NYSE:WU) are both financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares goeasy and Western Union’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
goeasy	N/A	N/A	N/A
Western Union	14.12%	120.76%	7.83%

Dividends

goeasy pays an annual dividend of $0.26 per share and has a dividend yield of 0.2%. Western Union pays an annual dividend of $0.94 per share and has a dividend yield of 7.0%. goeasy pays out 20.5% of its earnings in the form of a dividend. Western Union pays out 55.6% 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for goeasy and Western Union, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
goeasy	0	0	0	0	N/A
Western Union	3	8	0	0	1.73

goeasy currently has a consensus price target of $167.33, suggesting a potential upside of 22.38%. Western Union has a consensus price target of $13.61, suggesting a potential upside of 1.35%. Given goeasy’s higher probable upside, analysts plainly believe goeasy is more favorable than Western Union.

Insider & Institutional Ownership

23.7% of goeasy shares are held by institutional investors. Comparatively, 91.8% of Western Union shares are held by institutional investors. 0.9% of Western Union shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares goeasy and Western Union’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
goeasy	N/A	N/A	N/A	$1.24	109.83
Western Union	$4.36 billion	1.04	$626.00 million	$1.69	7.95

Western Union has higher revenue and earnings than goeasy. Western Union is trading at a lower price-to-earnings ratio than goeasy, indicating that it is currently the more affordable of the two stocks.

Summary

Western Union beats goeasy on 8 of the 11 factors compared between the two stocks.

About goeasy

goeasy Ltd. provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. The company operates through two segments, Easyfinancial and Easyhome. It offers unsecured and secured installment loans; home equity secured instalment loans and automotive vehicle financing; and loans to finance the purchase of retail goods, powersports and recreational vehicles, home improvement projects, and healthcare related products and services. The companyleases household furniture, appliances, electronics, and unsecured lending products to retail consumers. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was incorporated in 1990 and is headquartered in Mississauga, Canada.

About Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.