Enova International (NYSE:ENVA) versus Ally Financial (NYSE:ALLY) Head to Head Contrast

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

Earnings & Valuation

This table compares Enova International and Ally Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enova International	$2.66 billion	1.15	$209.45 million	$9.42	12.95
Ally Financial	$8.18 billion	1.51	$668.00 million	$1.54	26.09

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Enova International and Ally Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enova International	0	1	5	1	3.00
Ally Financial	0	7	9	0	2.56

Enova International currently has a consensus price target of $111.00, indicating a potential downside of 8.99%. Ally Financial has a consensus price target of $45.43, indicating a potential upside of 13.06%. Given Ally Financial’s higher possible upside, analysts clearly believe Ally Financial is more favorable than Enova International.

Profitability

This table compares Enova International and Ally Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enova International	8.75%	23.33%	5.23%
Ally Financial	7.64%	9.48%	0.59%

Institutional and Insider Ownership

89.4% of Enova International shares are held by institutional investors. Comparatively, 88.8% of Ally Financial shares are held by institutional investors. 8.4% of Enova International shares are held by company insiders. Comparatively, 0.6% of Ally Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Enova International has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

Enova International beats Ally Financial on 9 of the 15 factors compared between the two stocks.

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.

About Ally Financial

Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. The Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing. It also provides financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers. This segment provides vehicle service and maintenance contract, and guaranteed asset protection products; and underwrites commercial insurance coverages, which primarily insure dealers’ vehicle inventory. The Mortgage Finance Operations segment manages consumer mortgage loan portfolio that includes bulk purchases of jumbo and low-to-moderate income mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings. The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to middle market companies; leveraged loans; and commercial real estate product to serve companies in the nursing facilities, senior housing, and medical office buildings. It also offers commercial banking products and services. In addition, it provides securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan.