Financial Review: Credit Saison (OTCMKTS:CSASF) versus Encore Capital Group (NASDAQ:ECPG)

Encore Capital Group (NASDAQ:ECPG) and Credit Saison (OTCMKTS:CSASF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Valuation and Earnings

This table compares Encore Capital Group and Credit Saison”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Encore Capital Group	$1.77 billion	1.21	$256.83 million	$13.21	7.64
Credit Saison	N/A	N/A	N/A	C$144.02	0.16

Encore Capital Group has higher revenue and earnings than Credit Saison. Credit Saison is trading at a lower price-to-earnings ratio than Encore Capital Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Encore Capital Group and Credit Saison, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Encore Capital Group	0	0	5	1	3.17
Credit Saison	0	0	0	0	0.00

Encore Capital Group presently has a consensus price target of $89.75, suggesting a potential downside of 11.09%. Given Encore Capital Group’s stronger consensus rating and higher possible upside, analysts plainly believe Encore Capital Group is more favorable than Credit Saison.

Insider & Institutional Ownership

26.3% of Credit Saison shares are owned by institutional investors. 3.0% of Encore Capital Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Encore Capital Group and Credit Saison’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Encore Capital Group	15.86%	29.83%	5.58%
Credit Saison	N/A	N/A	N/A

Summary

Encore Capital Group beats Credit Saison on 10 of the 12 factors compared between the two stocks.

About Encore Capital Group

Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.

About Credit Saison

Credit Saison Co., Ltd. provides leasing, finance, real estate, entertainment, and payment services in Japan and internationally. The company offers credit cards, prepaid and debit cards, smartphone-based services, and information processing services; internet advertisement agency; marketing consulting; temporary staffing; and contracting services. It also engages in the credit guarantee and finance related businesses; real estate business; real estate leasing activities; and digital marketing and asset management services, as well as develops and manages amusement. Further, it involved in the import and sell of lifestyle goods; cleaning, security, and property maintenance services; debt collection; personal loan; life/non-life insurance agency; online ticket system and payment services; digital lending; and sells information security and office disaster prevention related services, etc. The company was formerly known as Seibu Credit Co., Ltd. and changed its name to Credit Saison Co., Ltd. in October 1989. Credit Saison Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.