ThinkSmart (LON:TSL) and Amigo (LON:AMGO) are both small-cap financial services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares ThinkSmart and Amigo's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
ThinkSmart | N/A | N/A | N/A |
Amigo | N/A | N/A | N/A |
Dividends
ThinkSmart pays an annual dividend of GBX 0.01 per share and has a dividend yield of 0.0%. Amigo pays an annual dividend of GBX 0.03 per share and has a dividend yield of 0.3%. ThinkSmart pays out 0.0% of its earnings in the form of a dividend. Amigo pays out -0.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amigo is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent recommendations for ThinkSmart and Amigo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
ThinkSmart | 0 | 0 | 1 | 0 | 3.00 |
Amigo | 0 | 1 | 0 | 0 | 2.00 |
ThinkSmart currently has a consensus price target of GBX 62, indicating a potential downside of 18.42%. Given ThinkSmart's stronger consensus rating and higher possible upside, research analysts plainly believe ThinkSmart is more favorable than Amigo.
Valuation & Earnings
This table compares ThinkSmart and Amigo's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
ThinkSmart | £6.33 million | 12.78 | N/A | GBX 49 | 1.55 |
Amigo | £241.10 million | 0.23 | N/A | GBX (27.80) | -0.41 |
Amigo is trading at a lower price-to-earnings ratio than ThinkSmart, indicating that it is currently the more affordable of the two stocks.
Summary
ThinkSmart beats Amigo on 6 of the 9 factors compared between the two stocks.