Elevate Credit (ELVT) vs. Consumer Portfolio Services (CPSS) Head-To-Head Review

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

Profitability

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

Net Margins Return on Equity Return on Assets
Elevate Credit -0.49% 12.82% 1.96%
Consumer Portfolio Services -0.11% 7.76% 0.60%

Earnings & Valuation

This table compares Elevate Credit and Consumer Portfolio Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Elevate Credit $673.13 million 0.27 -$6.91 million $0.16 26.25
Consumer Portfolio Services $434.38 million 0.19 $3.76 million $0.80 4.66

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Elevate Credit and Consumer Portfolio Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elevate Credit 0 4 3 0 2.43
Consumer Portfolio Services 0 0 2 0 3.00

Elevate Credit currently has a consensus target price of $9.80, indicating a potential upside of 133.33%. Consumer Portfolio Services has a consensus target price of $5.50, indicating a potential upside of 47.45%. Given Elevate Credit’s higher probable upside, analysts plainly believe Elevate Credit is more favorable than Consumer Portfolio Services.

Institutional & Insider Ownership

46.1% of Elevate Credit shares are owned by institutional investors. Comparatively, 41.6% of Consumer Portfolio Services shares are owned by institutional investors. 32.0% of Elevate Credit shares are owned by insiders. Comparatively, 46.2% of Consumer Portfolio Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Elevate Credit has a beta of 3.14, meaning that its share price is 214% more volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Summary

Elevate Credit beats Consumer Portfolio Services on 9 of the 14 factors compared between the two stocks.

About Elevate Credit

Elevate Credit, Inc. provides online credit solutions to non-prime consumers in the United States and the United Kingdom. The company offers unsecured online installment loans and lines of credit. Its products include Rise installment loan and line of credit products; Elastic, a line of credit product; and Sunny installment loan products. Elevate Credit, Inc. was incorporated in 2014 and is headquartered in Fort Worth, Texas.

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.

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