TPG RE Finance Trust (NASDAQ: TRTX) and World Acceptance Corporation (NASDAQ:WRLD) are both small-cap financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Institutional & Insider Ownership

91.9% of World Acceptance Corporation shares are owned by institutional investors. 27.3% of World Acceptance Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares TPG RE Finance Trust and World Acceptance Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TPG RE Finance Trust N/A N/A N/A N/A N/A
World Acceptance Corporation $533.56 million 1.38 $136.07 million $7.98 10.57

World Acceptance Corporation has higher revenue and earnings than TPG RE Finance Trust.

Analyst Ratings

This is a summary of current recommendations and price targets for TPG RE Finance Trust and World Acceptance Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TPG RE Finance Trust 0 2 3 0 2.60
World Acceptance Corporation 3 0 0 0 1.00

TPG RE Finance Trust presently has a consensus target price of $21.20, suggesting a potential upside of 7.12%. World Acceptance Corporation has a consensus target price of $52.33, suggesting a potential downside of 37.93%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, analysts plainly believe TPG RE Finance Trust is more favorable than World Acceptance Corporation.

Profitability

This table compares TPG RE Finance Trust and World Acceptance Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TPG RE Finance Trust 48.73% 10.27% 3.73%
World Acceptance Corporation 13.13% 15.75% 8.48%

Summary

World Acceptance Corporation beats TPG RE Finance Trust on 5 of the 9 factors compared between the two stocks.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.

About World Acceptance Corporation

World Acceptance Corporation operates a small-loan consumer finance business in 15 states and Mexico as of March 31, 2016. The Company offers short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. The Company offers standardized installment loans generally between $300 and $4,000 through 1,339 branches in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, Wisconsin and Mexico as of March 31, 2016. The Company generally serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses and credit card lenders. In the United States branches, the Company also offers income tax return preparation services to its loan customers and other individuals.

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