Reviewing Enova International (NYSE:ENVA) and Mr. Cooper Group (NASDAQ:COOP)

Mr. Cooper Group (NASDAQ:COOP) and Enova International (NYSE:ENVA) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

89.8% of Mr. Cooper Group shares are held by institutional investors. Comparatively, 89.4% of Enova International shares are held by institutional investors. 1.7% of Mr. Cooper Group shares are held by company insiders. Comparatively, 8.4% of Enova International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Mr. Cooper Group and Enova International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mr. Cooper Group	25.38%	15.66%	4.22%
Enova International	8.75%	23.33%	5.23%

Risk & Volatility

Mr. Cooper Group has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Enova International has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mr. Cooper Group and Enova International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mr. Cooper Group	$2.23 billion	5.35	$669.00 million	$8.74	21.27
Enova International	$2.66 billion	0.97	$209.45 million	$9.42	10.91

Mr. Cooper Group has higher earnings, but lower revenue than Enova International. Enova International is trading at a lower price-to-earnings ratio than Mr. Cooper Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mr. Cooper Group and Enova International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mr. Cooper Group	0	5	4	0	2.44
Enova International	0	1	5	1	3.00

Mr. Cooper Group currently has a consensus price target of $140.3750, indicating a potential downside of 24.48%. Enova International has a consensus price target of $111.00, indicating a potential upside of 8.04%. Given Enova International’s stronger consensus rating and higher probable upside, analysts plainly believe Enova International is more favorable than Mr. Cooper Group.

Summary

Enova International beats Mr. Cooper Group on 10 of the 15 factors compared between the two stocks.

About Mr. Cooper Group

Mr. Cooper Group Inc., together with its subsidiaries, operates as a non-bank servicer of residential mortgage loans in the United States. The company operates through Servicing and Originations segments. The Servicing segment performs activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans, performing collections, foreclosures, and the sale of real estate owned. The Originations segment originates residential mortgage loans through its direct-to-consumer and correspondent channels. The company provides its services under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.

About Enova International

Enova International, Inc., a technology and analytics company, provides online financial services in the United States, Brazil, and internationally. The company provides installment loans; line of credit accounts; CSO programs, including arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs, such as marketing services and loan servicing for near-prime unsecured consumer installment loan. It offers money transfer services. It markets its financing products under the CashNetUSA, NetCredit, OnDeck, Headway Capital, Simplic, and Pangea names. The company was founded in 2003 and is headquartered in Chicago, Illinois.