Reviewing Encore Capital Group (NASDAQ:ECPG) & Vanquis Banking Group (OTCMKTS:FPLPF)

Encore Capital Group (NASDAQ:ECPG) and Vanquis Banking Group (OTCMKTS:FPLPF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Institutional and Insider Ownership

58.3% of Vanquis Banking Group shares are held by institutional investors. 3.0% of Encore Capital Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Encore Capital Group and Vanquis Banking Group”s gross 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	1.24	$256.83 million	$13.21	7.85
Vanquis Banking Group	N/A	N/A	N/A	$1.12	1.40

Encore Capital Group has higher revenue and earnings than Vanquis Banking Group. Vanquis Banking Group 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.

Profitability

This table compares Encore Capital Group and Vanquis Banking Group’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%
Vanquis Banking Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Encore Capital Group and Vanquis Banking Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Encore Capital Group	0	0	5	1	3.17
Vanquis Banking Group	0	0	0	0	0.00

Encore Capital Group presently has a consensus target price of $89.75, suggesting a potential downside of 13.44%. Given Encore Capital Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Encore Capital Group is more favorable than Vanquis Banking Group.

Summary

Encore Capital Group beats Vanquis Banking Group on 11 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 Vanquis Banking Group

Vanquis Banking Group plc engages in the provision of personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland. The company offers credit cards products, and unsecured personal loans products, as well as provides vehicle finance for cars, motorbikes, van, and light commercial vehicles. It also operates Snoop, a fintech app, that uses open banking to help users save money and manage their finances. The company was formerly known as Provident Financial plc and changed its name to Vanquis Banking Group plc in March 2023. Vanquis Banking Group plc was founded in 1880 and is headquartered in Bradford, the United Kingdom.