Head to Head Contrast: Consumer Portfolio Services (CPSS) vs. Its Peers

Consumer Portfolio Services (NASDAQ: CPSS) is one of 29 publicly-traded companies in the “Nondepository credit institutions” industry, but how does it contrast to its peers? We will compare Consumer Portfolio Services to related companies based on the strength of its valuation, profitability, analyst recommendations, earnings, dividends, risk and institutional ownership.

Volatility and Risk

Consumer Portfolio Services has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Consumer Portfolio Services’ peers have a beta of 1.49, indicating that their average stock price is 49% more volatile than the S&P 500.

Institutional and Insider Ownership

47.3% of Consumer Portfolio Services shares are held by institutional investors. Comparatively, 50.7% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 37.5% of Consumer Portfolio Services shares are held by insiders. Comparatively, 17.5% of shares of all “Nondepository credit institutions” companies are held by 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Consumer Portfolio Services and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consumer Portfolio Services 0 0 1 0 3.00
Consumer Portfolio Services Competitors 161 724 970 41 2.47

Consumer Portfolio Services presently has a consensus price target of $6.00, suggesting a potential upside of 66.20%. As a group, “Nondepository credit institutions” companies have a potential downside of 4.55%. Given Consumer Portfolio Services’ stronger consensus rating and higher probable upside, analysts plainly believe Consumer Portfolio Services is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Consumer Portfolio Services 0.56% 9.17% 0.72%
Consumer Portfolio Services Competitors 13.65% 50.64% -1.43%

Earnings & Valuation

This table compares Consumer Portfolio Services and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Consumer Portfolio Services $434.38 million $3.76 million 4.51
Consumer Portfolio Services Competitors $6.70 billion $704.78 million 12.23

Consumer Portfolio Services’ peers have higher revenue and earnings than Consumer Portfolio Services. Consumer Portfolio Services is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Consumer Portfolio Services peers beat Consumer Portfolio Services on 7 of the 13 factors compared.

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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