Chesswood Group (OTCMKTS:CHWWF) & Gentera (OTCMKTS:CMPRF) Critical Survey

Gentera (OTCMKTS:CMPRF) and Chesswood Group (OTCMKTS:CHWWF) are both financial services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

Gentera pays an annual dividend of $1.10 per share and has a dividend yield of 94.0%. Chesswood Group pays an annual dividend of $0.78 per share and has a dividend yield of 14.9%. Gentera pays out 56.5% of its earnings in the form of a dividend. Chesswood Group pays out 85.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gentera is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for Gentera and Chesswood Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentera	0	1	2	0	2.67
Chesswood Group	1	1	0	0	1.50

Chesswood Group has a consensus target price of $10.60, indicating a potential upside of 103.85%. Given Chesswood Group’s higher possible upside, analysts plainly believe Chesswood Group is more favorable than Gentera.

Profitability

This table compares Gentera and Chesswood Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentera	N/A	N/A	N/A
Chesswood Group	N/A	N/A	N/A

Institutional and Insider Ownership

25.2% of Gentera shares are held by institutional investors. Comparatively, 12.6% of Chesswood Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Gentera and Chesswood Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentera	N/A	N/A	N/A	$1.95	0.60
Chesswood Group	N/A	N/A	N/A	$0.91	5.72

Gentera is trading at a lower price-to-earnings ratio than Chesswood Group, indicating that it is currently the more affordable of the two stocks.

Summary

Gentera beats Chesswood Group on 6 of the 8 factors compared between the two stocks.

About Gentera

Gentera, S. A. B. de C. V. provides various financial products and services in Mexico and Peru. The company offers individual and group credit, savings, insurance, and transactional channels services to entrepreneurs and microentrepreneurs. It also provides insurance agent services; and personal loans; as well as operates as a bank commission agent administrator that offers financial operations, payment of services, and cellphone top-ups services. The company was formerly known as Financiera Compartamos, S.A. B. de C. V. Gentera, S. A. B. de C. V. was founded in 1990 and is headquartered in Mexico City, Mexico.

About Chesswood Group

Chesswood Group Limited, a financial services company, operates primarily in the specialty finance industry. The company offers micro and small-ticket commercial equipment financing to small and medium-sized businesses through a network equipment finance broker firms and equipment vendors in the United States; and commercial equipment financing to small and medium businesses through a network of equipment finance broker firms in Canada. It also provides home improvement and other consumer financing solutions. The company was formerly known as Chesswood Income Fund and changed its name to Chesswood Group Limited in January 2011. Chesswood Group Limited was founded in 1982 and is headquartered in Toronto, Canada.