Contrasting EZCORP (NASDAQ:EZPW) and Upstart (NASDAQ:UPST)

EZCORP (NASDAQ:EZPW) and Upstart (NASDAQ:UPST) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares EZCORP and Upstart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EZCORP	9.97%	13.99%	7.49%
Upstart	4.84%	7.13%	1.82%

Volatility & Risk

EZCORP has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Upstart has a beta of 2.43, indicating that its share price is 143% more volatile than the S&P 500.

Earnings and Valuation

This table compares EZCORP and Upstart”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EZCORP	$1.58 billion	1.27	$109.61 million	$1.98	16.53
Upstart	$1.04 billion	2.12	$53.60 million	$0.49	46.41

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

Insider & Institutional Ownership

99.8% of EZCORP shares are owned by institutional investors. Comparatively, 63.0% of Upstart shares are owned by institutional investors. 2.1% of EZCORP shares are owned by company insiders. Comparatively, 17.3% of Upstart shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for EZCORP and Upstart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EZCORP	0	2	6	0	2.75
Upstart	2	7	8	0	2.35

EZCORP presently has a consensus price target of $38.80, indicating a potential upside of 18.58%. Upstart has a consensus price target of $43.06, indicating a potential upside of 89.37%. Given Upstart’s higher possible upside, analysts clearly believe Upstart is more favorable than EZCORP.

Summary

EZCORP beats Upstart on 8 of the 14 factors compared between the two stocks.

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.

About Upstart

Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions. Upstart Holdings, Inc. was founded in 2012 and is headquartered in San Mateo, California.