Analyzing Manhattan Bridge Capital (NASDAQ:LOAN) & World Acceptance (NASDAQ:WRLD)

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

Earnings & Valuation

This table compares Manhattan Bridge Capital and World Acceptance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manhattan Bridge Capital	$9.69 million	6.23	$5.59 million	$0.47	11.23
World Acceptance	$564.84 million	1.55	$89.74 million	$16.36	10.06

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

Institutional & Insider Ownership

21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 83.6% of World Acceptance shares are held by institutional investors. 24.5% of Manhattan Bridge Capital shares are held by insiders. Comparatively, 43.2% of World Acceptance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Manhattan Bridge Capital and World Acceptance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	0	0	0	0.00
World Acceptance	0	1	0	0	2.00

World Acceptance has a consensus target price of $10.00, suggesting a potential downside of 93.92%. Given World Acceptance’s stronger consensus rating and higher possible upside, analysts plainly believe World Acceptance is more favorable than Manhattan Bridge Capital.

Risk and Volatility

Manhattan Bridge Capital has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, World Acceptance has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Manhattan Bridge Capital	58.44%	12.68%	8.03%
World Acceptance	15.89%	21.02%	8.51%

Summary

World Acceptance beats Manhattan Bridge Capital on 10 of the 13 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 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.