Financial Review: Consumer Portfolio Services (CPSS) and Its Rivals

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

Analyst Ratings

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This is a breakdown of current ratings 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 157 721 969 41 2.47

Consumer Portfolio Services currently has a consensus price target of $6.00, indicating a potential upside of 57.07%. As a group, “Nondepository credit institutions” companies have a potential downside of 6.24%. Given Consumer Portfolio Services’ stronger consensus rating and higher probable upside, analysts clearly believe Consumer Portfolio Services is more favorable than its peers.

Earnings and 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 4.78
Consumer Portfolio Services Competitors $6.70 billion $705.01 million 11.67

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.

Volatility and Risk

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

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 0.87% 9.88% 0.77%
Consumer Portfolio Services Competitors 15.24% 65.06% 1.59%

Institutional and Insider Ownership

47.2% of Consumer Portfolio Services shares are owned by institutional investors. Comparatively, 52.8% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 37.5% of Consumer Portfolio Services shares are owned by insiders. Comparatively, 16.1% of shares of all “Nondepository credit institutions” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Consumer Portfolio Services peers beat Consumer Portfolio Services on 8 of the 13 factors compared.

Consumer Portfolio Services Company Profile

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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