Head to Head Analysis: CURO Group (CURO) & Consumer Portfolio Services (CPSS)

CURO Group (NYSE: CURO) and Consumer Portfolio Services (NASDAQ:CPSS) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

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This table compares CURO Group and Consumer Portfolio Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CURO Group N/A N/A N/A
Consumer Portfolio Services 0.87% 9.88% 0.77%

Insider & Institutional Ownership

42.7% of CURO Group shares are owned by institutional investors. Comparatively, 47.2% of Consumer Portfolio Services shares are owned by institutional investors. 37.5% of Consumer Portfolio Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares CURO Group and Consumer Portfolio Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CURO Group $963.63 million 0.79 $49.15 million $1.84 9.31
Consumer Portfolio Services $434.38 million 0.18 $3.76 million $0.80 4.64

CURO Group has higher revenue and earnings than Consumer Portfolio Services. Consumer Portfolio Services is trading at a lower price-to-earnings ratio than CURO Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for CURO Group and Consumer Portfolio Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CURO Group 0 0 5 0 3.00
Consumer Portfolio Services 0 0 1 0 3.00

CURO Group presently has a consensus price target of $20.50, suggesting a potential upside of 19.67%. Consumer Portfolio Services has a consensus price target of $6.00, suggesting a potential upside of 61.73%. Given Consumer Portfolio Services’ higher possible upside, analysts clearly believe Consumer Portfolio Services is more favorable than CURO Group.

About CURO Group

CURO Group Holdings Corp. provides consumer finance to a range of underbanked consumers in the United States, Canada, and the United Kingdom. It offers unsecured installment loans, secured installment loans, open-end loans, and single-pay loans, as well as ancillary financial products, including check cashing, proprietary reloadable prepaid debit cards, credit protection insurance, gold buying, retail installment sales, and money transfer services. The company operates under the Speedy Cash, Rapid Cash, Avio Credit, and Cash Money brands; and online as Wage Day Advance, as well as offers installment loans online under the LendDirect brand. The company was formerly known as Speedy Group Holdings Corp. and changed its name to CURO Group Holdings Corp. in May 2016. CURO Group Holdings Corp. was founded in 1997 and is based in Wichita, Kansas.

About Consumer Portfolio Services

Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. The company purchases and services retail automobile contracts originated by franchised automobile dealers and select independent dealers in the sale of new and used automobiles, light trucks, and passenger vans. The company, through its automobile contract purchases, offers indirect financing to the customers of dealers with limited credit histories or past credit problems. It serves as an alternative source of financing for dealers, facilitating sales to customers who might not be able to obtain financing from commercial banks, credit unions, and the captive finance companies. The company also acquires installment purchase contracts in four merger and acquisition transactions; and offers financing directly to sub-prime consumers to facilitate their purchase of a new or used automobile, light truck, or passenger van. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. Consumer Portfolio Services, Inc. was founded in 1991 and is headquartered in Irvine, California.

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