Comparing Nationstar Mortgage Holdings (NSM) & Altisource Portfolio Solutions (ASPS)

Altisource Portfolio Solutions (NASDAQ: ASPS) and Nationstar Mortgage Holdings (NYSE:NSM) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares Altisource Portfolio Solutions and Nationstar Mortgage Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altisource Portfolio Solutions 0.23% 80.34% 8.25%
Nationstar Mortgage Holdings 10.52% 9.64% 0.87%

Volatility & Risk

Altisource Portfolio Solutions has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Nationstar Mortgage Holdings has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Altisource Portfolio Solutions and Nationstar Mortgage Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altisource Portfolio Solutions 0 2 0 0 2.00
Nationstar Mortgage Holdings 2 3 5 0 2.30

Altisource Portfolio Solutions currently has a consensus target price of $19.00, indicating a potential downside of 24.39%. Nationstar Mortgage Holdings has a consensus target price of $18.33, indicating a potential downside of 6.46%. Given Nationstar Mortgage Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Nationstar Mortgage Holdings is more favorable than Altisource Portfolio Solutions.

Earnings and Valuation

This table compares Altisource Portfolio Solutions and Nationstar Mortgage Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Altisource Portfolio Solutions $982.54 million 0.46 $148.76 million $0.12 209.42
Nationstar Mortgage Holdings $1.42 billion 1.35 $223.85 million $2.29 8.56

Nationstar Mortgage Holdings has higher revenue and earnings than Altisource Portfolio Solutions. Nationstar Mortgage Holdings is trading at a lower price-to-earnings ratio than Altisource Portfolio Solutions, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

54.8% of Altisource Portfolio Solutions shares are held by institutional investors. Comparatively, 99.0% of Nationstar Mortgage Holdings shares are held by institutional investors. 6.8% of Altisource Portfolio Solutions shares are held by company insiders. Comparatively, 0.8% of Nationstar Mortgage Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Nationstar Mortgage Holdings beats Altisource Portfolio Solutions on 11 of the 14 factors compared between the two stocks.

About Altisource Portfolio Solutions

Altisource Portfolio Solutions S.A. is a marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. The Company’s business processes, vendor and electronic payment management software and behavioral science-based analytics manage outcomes for marketplace participants. It operates through three segments: Mortgage Services, Financial Services and Technology Services. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies. The Financial Services segment provides collection services to debt originators and servicers and customer relationship management services. The Technology Services segment provides software and data analytics solutions that support management of mortgage and real estate activities and marketplace transactions across mortgage and real estate lifecycles and information technology infrastructure management services.

About Nationstar Mortgage Holdings

Nationstar Mortgage Holdings Inc. provides servicing, origination and transaction based services principally to single-family residences throughout the United States. The Company operates through three segments: Servicing, Originations and Xome. The Company provides residential loan services in the United States. The Company also operates an integrated residential loan origination platform that is primarily focused on customer retention. Its Xome subsidiary offers an array of complementary services related to the purchase and disposition of residential real estate. It provides non-bank services and residential mortgage services in the United States conducting operations through its Nationstar Mortgage and Champion Mortgage brands. It originates and purchases conventional mortgage loans conforming to the underwriting standards of the government sponsored entities, which it collectively refers to as Agency loans. The Xome segment is a provider of technology and data-enhanced solutions.

Receive News & Ratings for Altisource Portfolio Solutions S.A. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Altisource Portfolio Solutions S.A. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply