Consumer Portfolio Services (NASDAQ:CPSS) versus CHINA MERCHANTS/ADR (NASDAQ:CIHKY) Head to Head Contrast

Consumer Portfolio Services (NASDAQ:CPSS) and CHINA MERCHANTS/ADR (OTCMKTS:CIHKY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Volatility & Risk

Consumer Portfolio Services has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, CHINA MERCHANTS/ADR has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares Consumer Portfolio Services and CHINA MERCHANTS/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Consumer Portfolio Services 3.59% 5.84% 0.46%
CHINA MERCHANTS/ADR N/A N/A N/A

Earnings & Valuation

This table compares Consumer Portfolio Services and CHINA MERCHANTS/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Consumer Portfolio Services $389.77 million 0.21 $14.86 million $0.51 7.12
CHINA MERCHANTS/ADR $46.95 billion 2.57 $10.38 billion N/A N/A

CHINA MERCHANTS/ADR has higher revenue and earnings than Consumer Portfolio Services.

Dividends

CHINA MERCHANTS/ADR pays an annual dividend of $0.56 per share and has a dividend yield of 2.3%. Consumer Portfolio Services does not pay a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Consumer Portfolio Services and CHINA MERCHANTS/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consumer Portfolio Services 0 0 1 0 3.00
CHINA MERCHANTS/ADR 0 0 0 0 N/A

Consumer Portfolio Services currently has a consensus target price of $5.00, indicating a potential upside of 37.74%. Given Consumer Portfolio Services’ higher possible upside, equities analysts plainly believe Consumer Portfolio Services is more favorable than CHINA MERCHANTS/ADR.

Institutional and Insider Ownership

48.1% of Consumer Portfolio Services shares are owned by institutional investors. Comparatively, 0.0% of CHINA MERCHANTS/ADR shares are owned by institutional investors. 46.2% of Consumer Portfolio Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Consumer Portfolio Services beats CHINA MERCHANTS/ADR on 8 of the 13 factors compared between the two stocks.

About Consumer Portfolio Services

Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It 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, low incomes, 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. Consumer Portfolio Services, Inc. services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was founded in 1991 and is headquartered in Irvine, California.

About CHINA MERCHANTS/ADR

China Merchants Bank Co., Ltd. provides various wholesale and retail banking products and services in the People's Republic of China and internationally. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers time, demand, call, notice, and RMB deposits; and deposit, current, and capital accounts. It also provides personal commercial real estate, consumption, housing, and car loans, as well as loans to finance for studying abroad; micro-business, combo, guarantee, and housing mortgage loans; mortgage loans for equipment; bank acceptance, discount, liquid capital, and fixed asset loans; and financial leasing, third-party payment, and guarantee services, as well as loans for vessels. In addition, the company offers investment and wealth management, and insurance products; individual forex option and express, and gold trading services; open ended funds; private banking and cash management services; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. Further, it provides settlement and trade chain financing services; international business, wealth investment, risk and financial management, cross border RMB financing, international factoring and settlement, oversea financing, and trade finance services; and forfeiting and risk participation, cross border RMB clearing, interbank business, and escrow services. Additionally, the company offers instruments; custody and pension services; credit cards; and Internet and mobile banking services. As of December 31, 2017, it had 137 branches; 1,681 sub-branches; 1 branch-level operation center; 1 representative office; 3,340 self-service centers; 11,382 self-service machines, including 1,610 automatic teller machines, and 9,772 deposit-taking and cash withdrawal machines; and 12,936 visual counters. The company was founded in 1987 and is headquartered in Shenzhen, China.

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