Capital One Financial (NYSE:COF – Get Free Report) and Consumer Portfolio Services (NASDAQ:CPSS – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Volatility and Risk
Capital One Financial has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
Valuation and Earnings
This table compares Capital One Financial and Consumer Portfolio Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capital One Financial | $69.25 billion | 1.86 | $2.45 billion | $16.94 | 12.38 |
| Consumer Portfolio Services | $220.91 million | 1.00 | $19.33 million | $1.02 | 9.89 |
Capital One Financial has higher revenue and earnings than Consumer Portfolio Services. Consumer Portfolio Services is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Capital One Financial and Consumer Portfolio Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capital One Financial | 0 | 4 | 20 | 0 | 2.83 |
| Consumer Portfolio Services | 0 | 1 | 0 | 0 | 2.00 |
Capital One Financial currently has a consensus target price of $256.50, indicating a potential upside of 22.27%. Given Capital One Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Capital One Financial is more favorable than Consumer Portfolio Services.
Institutional and Insider Ownership
89.8% of Capital One Financial shares are held by institutional investors. Comparatively, 47.6% of Consumer Portfolio Services shares are held by institutional investors. 0.8% of Capital One Financial shares are held by company insiders. Comparatively, 63.8% of Consumer Portfolio Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Capital One Financial and Consumer Portfolio Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capital One Financial | 13.70% | 11.64% | 1.94% |
| Consumer Portfolio Services | 4.99% | 7.54% | 0.58% |
Summary
Capital One Financial beats Consumer Portfolio Services on 12 of the 14 factors compared between the two stocks.
About Capital One Financial
Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.
About Consumer Portfolio Services
Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It is involved in the purchase and service of 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 also serves as an alternative source of financing for dealers, facilitating sales to customers who are not able to obtain financing from commercial banks, credit unions, and the captive finance companies. In addition, the company acquires installment purchase contracts in merger and acquisition transactions; purchases immaterial amounts of vehicle purchase money loans from non-affiliated lenders. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was incorporated in 1991 and is based in Las Vegas, Nevada.
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