World Acceptance (NASDAQ:WRLD) versus Dave (NASDAQ:DAVE) Financial Analysis

Dave (NASDAQ:DAVE) and World Acceptance (NASDAQ:WRLD) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Institutional and Insider Ownership

18.0% of Dave shares are owned by institutional investors. Comparatively, 83.6% of World Acceptance shares are owned by institutional investors. 23.6% of Dave shares are owned by insiders. Comparatively, 38.0% of World Acceptance shares are owned 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.

Profitability

This table compares Dave and World Acceptance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dave	34.58%	77.46%	40.44%
World Acceptance	6.71%	12.13%	4.00%

Volatility and Risk

Dave has a beta of 3.92, indicating that its stock price is 292% more volatile than the S&P 500. Comparatively, World Acceptance has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares Dave and World Acceptance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dave	$554.20 million	8.46	$195.87 million	$15.42	23.83
World Acceptance	$585.74 million	1.37	$34.59 million	$8.46	20.29

Dave has higher earnings, but lower revenue than World Acceptance. World Acceptance is trading at a lower price-to-earnings ratio than Dave, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Dave and World Acceptance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dave	0	3	14	0	2.82
World Acceptance	0	2	0	0	2.00

Dave presently has a consensus target price of $433.25, indicating a potential upside of 17.92%. Given Dave’s stronger consensus rating and higher probable upside, research analysts plainly believe Dave is more favorable than World Acceptance.

Summary

Dave beats World Acceptance on 11 of the 14 factors compared between the two stocks.

About Dave

Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.

About World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.