Head-To-Head Survey: EZCORP (NASDAQ:EZPW) versus Manhattan Bridge Capital (NASDAQ:LOAN)

Manhattan Bridge Capital (NASDAQ:LOAN) and EZCORP (NASDAQ:EZPW) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Manhattan Bridge Capital and EZCORP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	0	0	0	0.00
EZCORP	0	2	2	1	2.80

EZCORP has a consensus target price of $18.50, indicating a potential upside of 18.82%. Given EZCORP’s stronger consensus rating and higher probable upside, analysts plainly believe EZCORP is more favorable than Manhattan Bridge Capital.

Valuation and Earnings

This table compares Manhattan Bridge Capital and EZCORP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manhattan Bridge Capital	$9.69 million	6.42	$5.59 million	$0.47	11.57
EZCORP	$1.16 billion	0.82	$83.10 million	$1.28	12.16

EZCORP has higher revenue and earnings than Manhattan Bridge Capital. Manhattan Bridge Capital is trading at a lower price-to-earnings ratio than EZCORP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Manhattan Bridge Capital and EZCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manhattan Bridge Capital	59.04%	12.68%	8.07%
EZCORP	7.96%	11.85%	6.13%

Volatility & Risk

Manhattan Bridge Capital has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, EZCORP has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Institutional & Insider Ownership

21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 99.8% of EZCORP shares are held by institutional investors. 24.5% of Manhattan Bridge Capital shares are held by insiders. Comparatively, 2.1% of EZCORP shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

EZCORP beats Manhattan Bridge Capital on 10 of the 15 factors compared between the two stocks.

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.

About EZCORP

EZCORP, Inc. provides pawn services in the United States and Latin America. The company operates through three segments: U.S. Pawn, Latin America Pawn, and Other Investments. The company offers pawn loans collateralized by tangible personal property, jewelry, consumer electronics, tools, sporting goods, and musical instruments. It also retails merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers. In addition, the company provides EZ+, a web-based application that allow customers to manage their pawn transactions, layaways, and loyalty rewards online. Further, it operates under the EZPAWN, Value Pawn & Jewelry, Empeño Fácil, Cash Apoyo Efectivo, GuatePrenda, and MaxiEfectivo brands. EZCORP, Inc. was incorporated in 1989 and is headquartered in Austin, Texas.