Critical Survey: Vroom (NASDAQ:VRM) & Enova International (NYSE:ENVA)

Vroom (NASDAQ:VRM) and Enova International (NYSE:ENVA) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Risk & Volatility

Vroom has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Enova International has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Insider and Institutional 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 company insiders. Comparatively, 8.4% of Enova International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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	-22.85%	-33.80%	-3.78%
Enova International	10.47%	27.25%	5.60%

Valuation & Earnings

This table compares Vroom and Enova International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vroom	$178.83 million	0.20	-$7.96 million	($11.12)	-0.62
Enova International	$3.15 billion	1.31	$308.39 million	$14.52	11.66

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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vroom and Enova International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vroom	1	0	0	0	1.00
Enova International	0	2	7	0	2.78

Enova International has a consensus target price of $239.00, suggesting a potential upside of 41.18%. 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 13 of the 13 factors compared between the two stocks.

About Vroom

Vroom, Inc. (NASDAQ: VRM) was an online automotive retailer that enabled consumers to buy and sell used vehicles through its digital platform. The company offered vehicle selection, pricing, financing, trade-ins, vehicle delivery and related transaction services, aiming to provide a primarily online alternative to traditional used-car dealerships. Founded in 2013, Vroom expanded its operations across the United States and supported its retail business with vehicle reconditioning, logistics and e-commerce technology.

About Enova International

Enova International is a financial technology company that provides online financial services to consumers and small businesses, with a focus on customers who may have limited access to traditional credit. Its products include installment loans and lines of credit. The company serves consumers through brands including CashNetUSA and NetCredit, and provides financing to small businesses through OnDeck and Headway Capital. Enova also uses data analytics and technology to support its lending and customer-service operations.