Critical Contrast: Elevate Credit (ELVT) vs. TransUnion (TRU)

Elevate Credit (NYSE: ELVT) and TransUnion (NYSE:TRU) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Profitability

This table compares Elevate Credit and TransUnion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elevate Credit N/A -42.13% -2.78%
TransUnion 12.08% 20.32% 6.22%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Elevate Credit and TransUnion, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elevate Credit 0 2 6 0 2.75
TransUnion 0 1 7 0 2.88

Elevate Credit presently has a consensus price target of $10.64, indicating a potential upside of 75.05%. TransUnion has a consensus price target of $47.38, indicating a potential upside of 13.85%. Given Elevate Credit’s higher possible upside, analysts plainly believe Elevate Credit is more favorable than TransUnion.

Earnings and Valuation

This table compares Elevate Credit and TransUnion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Elevate Credit $629.78 million 0.40 $58.65 million N/A N/A
TransUnion $1.80 billion 4.20 $636.70 million $1.16 35.87

TransUnion has higher revenue and earnings than Elevate Credit.

Insider & Institutional Ownership

51.9% of Elevate Credit shares are owned by institutional investors. 2.1% of TransUnion shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

TransUnion beats Elevate Credit on 9 of the 11 factors compared between the two stocks.

About Elevate Credit

Elevate Credit, Inc. provides online credit solutions to non-prime consumers, typically defined as those with credit scores of less than 700. The Company uses advanced technology risk analytics to provide financial options to its customers, who are not well-served by either banks or legacy non-prime lenders. It offers online installment loans and lines of credit in the United States, and the United Kingdom. Its products, Rise, Elastic and Sunny, provide customers with access to priced credit and services while helping them with credit building and financial wellness features. Its products include credit building and financial wellness programs, such as credit reporting, free credit monitoring (in the United States) and online financial literacy videos and tools. Rise is an installment loan product. As of March 31, 2016, Rise was available in 15 states in the United States. Sunny is the Company’s United Kingdom installment loan product.

About TransUnion

TransUnion is a risk and information solutions provider to businesses and consumers. The Company provides consumer reports, risk scores, analytical services and decision capabilities to businesses. The Company operates through three segments: U.S. Information Services (USIS), International and Consumer Interactive. The USIS segment provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. The International segment provides services similar to its USIS segment to businesses in select regions outside the United States. The Consumer Interactive segment offers solutions that help consumers manage their personal finances and take precautions against identity theft. Businesses uses its solutions for their process workflows to assess consumer ability to pay for services, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud.

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