Dave (NASDAQ:DAVE) and Atlanticus (NASDAQ:ATLC) Head-To-Head Comparison

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Dave and Atlanticus, as reported by MarketBeat.

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

Dave currently has a consensus target price of $433.25, indicating a potential upside of 17.41%. Atlanticus has a consensus target price of $129.00, indicating a potential upside of 37.91%. Given Atlanticus’ stronger consensus rating and higher probable upside, analysts clearly believe Atlanticus is more favorable than Dave.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dave	$554.20 million	8.50	$195.87 million	$15.42	23.93
Atlanticus	$1.97 billion	0.72	$122.20 million	$7.69	12.16

Dave has higher earnings, but lower revenue 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.

Institutional & Insider Ownership

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

Volatility & Risk

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

Summary

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

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.

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.