Analyzing World Acceptance (NASDAQ:WRLD) & goeasy (OTCMKTS:EHMEF)

goeasy (OTCMKTS:EHMEF) and World Acceptance (NASDAQ:WRLD) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for goeasy and World Acceptance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
goeasy	1	3	2	0	2.17
World Acceptance	0	2	0	0	2.00

Profitability

This table compares goeasy and World Acceptance’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
World Acceptance	6.71%	12.13%	4.00%

Institutional and Insider Ownership

23.7% of goeasy shares are held by institutional investors. Comparatively, 83.6% of World Acceptance shares are held by institutional investors. 38.0% of World Acceptance shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares goeasy and World Acceptance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
goeasy	N/A	N/A	N/A	$1.24	27.55
World Acceptance	$585.74 million	1.43	$34.59 million	$8.46	21.25

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

Summary

World Acceptance beats goeasy on 7 of the 10 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 World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.