Encore Capital Group (NASDAQ:ECPG – Get Free Report) and Dave (NASDAQ:DAVE – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Volatility & Risk
Encore Capital Group has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Dave has a beta of 3.83, meaning that its stock price is 283% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Encore Capital Group and Dave, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Encore Capital Group | 0 | 0 | 5 | 1 | 3.17 |
| Dave | 0 | 3 | 13 | 0 | 2.81 |
Valuation and Earnings
This table compares Encore Capital Group and Dave”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Encore Capital Group | $1.77 billion | 1.18 | $256.83 million | $13.21 | 7.46 |
| Dave | $554.20 million | 8.07 | $195.87 million | $15.42 | 22.74 |
Encore Capital Group has higher revenue and earnings than Dave. Encore Capital Group 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
18.0% of Dave shares are held by institutional investors. 3.0% of Encore Capital Group shares are held by company insiders. Comparatively, 23.6% of Dave shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Encore Capital Group and Dave’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Encore Capital Group | 15.86% | 29.83% | 5.58% |
| Dave | 34.58% | 77.46% | 40.44% |
Summary
Dave beats Encore Capital Group on 11 of the 15 factors compared between the two stocks.
About Encore Capital Group
Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.
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.
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