Head-To-Head Contrast: EZCORP (EZPW) & ZAGG (ZAGG)

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

Earnings & Valuation

This table compares EZCORP and ZAGG’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EZCORP $747.95 million 0.93 $31.85 million $0.62 20.56
ZAGG $519.49 million 0.83 $15.10 million $0.97 15.72

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

Analyst Ratings

This is a summary of recent ratings and target prices for EZCORP and ZAGG, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EZCORP 0 1 1 0 2.50
ZAGG 0 2 5 0 2.71

EZCORP presently has a consensus price target of $16.00, suggesting a potential upside of 25.49%. ZAGG has a consensus price target of $18.43, suggesting a potential upside of 20.84%. Given EZCORP’s higher possible upside, research analysts plainly believe EZCORP is more favorable than ZAGG.

Volatility & Risk

EZCORP has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, ZAGG has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
EZCORP 5.33% 6.81% 4.38%
ZAGG 5.25% 31.62% 13.96%

Insider and Institutional Ownership

100.0% of EZCORP shares are held by institutional investors. Comparatively, 85.8% of ZAGG shares are held by institutional investors. 2.1% of EZCORP shares are held by company insiders. Comparatively, 5.8% of ZAGG shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

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

About EZCORP

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.

About ZAGG

ZAGG Inc, together with its subsidiaries, designs, manufactures, and distributes mobile tech accessories for smartphones and tablets in the United States, Europe, and internationally. It operates in ZAGG and mophie segments. The company offers screen protection products; battery cases and power management products for tablets, smartphones, MP3 players, cameras, and other electronic mobile devices; device specific keyboards and device agnostic keyboards; and earbuds, headphones, wireless charging products, Bluetooth speakers, and cables under the ZAGG, InvisibleShield, IFROGZ, and mophie brands. It sells its products through indirect channels, including big box retailers, wireless retailers, domestic and international distributors, independent Apple retailers, university bookstores, and small independently owned consumer electronics stores, as well as directly to retailers or through distributors; and directly to consumers on its Websites at ZAGG.com and mophie.com. The company also sells its products to franchisees that operate kiosks and ZAGG branded stores in shopping malls and retail centers. ZAGG Inc is headquartered in Midvale, Utah.

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