EZCORP (NASDAQ: EZPW) and Party City Holdco (NYSE:PRTY) are both small-cap 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.
Insider and Institutional Ownership
92.6% of EZCORP shares are owned by institutional investors. Comparatively, 83.6% of Party City Holdco shares are owned by institutional investors. 2.1% of EZCORP shares are owned by company insiders. Comparatively, 5.0% of Party City Holdco 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.
This table compares EZCORP and Party City Holdco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Party City Holdco||9.08%||14.14%||4.18%|
This is a breakdown of recent recommendations and price targets for EZCORP and Party City Holdco, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Party City Holdco||0||2||4||0||2.67|
EZCORP currently has a consensus target price of $16.00, suggesting a potential upside of 20.75%. Party City Holdco has a consensus target price of $18.83, suggesting a potential upside of 18.82%. Given EZCORP’s higher possible upside, equities research analysts clearly believe EZCORP is more favorable than Party City Holdco.
Risk & Volatility
EZCORP has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, Party City Holdco has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500.
Valuation & Earnings
This table compares EZCORP and Party City Holdco’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EZCORP||$747.95 million||0.96||$31.85 million||$0.62||21.37|
|Party City Holdco||$2.37 billion||0.80||$215.34 million||$1.20||13.21|
Party City Holdco has higher revenue and earnings than EZCORP. Party City Holdco is trading at a lower price-to-earnings ratio than EZCORP, indicating that it is currently the more affordable of the two stocks.
Party City Holdco beats EZCORP on 10 of the 14 factors compared between the two stocks.
EZCORP Company Profile
EZCORP, Inc. provides pawn loans. The company operates through three segments: U.S. Pawn, Mexico Pawn, and Other International. It offers pawn loans, which are non-recourse loans collateralized by tangible personal property, such as jewelry, consumer electronics, power tools, sporting goods, and musical instruments; and sells merchandise, including collateral forfeited from pawn lending operations and used merchandise purchased from customers. The company also offers payday loan services through its financial services stores. As of October 6, 2017, it operated a network of 513 pawn stores in the United States under the EZPAWN or Value Pawn & Jewelry names; and 358 pawn stores in Latin America, which includes Mexico, Guatemala, El Salvador, Honduras, and Peru under the Empeño Fácil, GuatePrenda, and MaxiEfectivo names. The company also operates a network of 27 financial services stores under the CASHMAX name in Canada. EZCORP, Inc. was founded in 1989 and is headquartered in Austin, Texas.
Party City Holdco Company Profile
Party City Holdco Inc. is a holding company with no operating assets or operations. As of December 31, 2016, the Company owned PC Nextco Holdings, LLC (PC Nextco), which owned PC Intermediate Holdings, Inc. (PC Intermediate). As of December 31, 2016, PC Intermediate owned Party City Holdings Inc. (PCHI). PCHI or its direct or indirect subsidiaries conduct all of its operating businesses. The Company operates through two segments: Retail and Wholesale. Its retail operations generate revenue primarily through the sale of its Amscan, Designware, Anagram and Costumes USA party supplies through its Party City stores, Halloween City stores and PartyCity.com. Its wholesale revenues are generated from the sale of party goods for all occasions, including paper and plastic tableware, accessories and novelties, costumes, metallic and latex balloons and stationery.
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