Analyzing Dave (NASDAQ:DAVE) & Atlanticus (NASDAQ:ATLC)

Atlanticus (NASDAQ:ATLC) and Dave (NASDAQ:DAVE) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares Atlanticus and Dave’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlanticus	5.80%	25.17%	2.15%
Dave	34.58%	77.46%	40.44%

Valuation & Earnings

This table compares Atlanticus and Dave”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlanticus	$1.97 billion	0.71	$122.20 million	$7.69	11.97
Dave	$554.20 million	8.46	$195.87 million	$15.42	23.83

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

Insider & Institutional Ownership

14.2% of Atlanticus shares are owned by institutional investors. Comparatively, 18.0% of Dave shares are owned by institutional investors. 51.0% of Atlanticus shares are owned by insiders. Comparatively, 23.6% of Dave shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Atlanticus and Dave, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlanticus	0	2	5	1	2.88
Dave	0	3	14	0	2.82

Atlanticus presently has a consensus target price of $129.00, indicating a potential upside of 40.19%. Dave has a consensus target price of $433.25, indicating a potential upside of 17.92%. Given Atlanticus’ stronger consensus rating and higher probable upside, analysts clearly believe Atlanticus is more favorable than Dave.

Volatility & Risk

Atlanticus has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Dave has a beta of 3.92, suggesting that its stock price is 292% more volatile than the S&P 500.

Summary

Dave beats Atlanticus on 10 of the 15 factors compared between the two stocks.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.

About Dave

Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.