Encore Capital Group (NASDAQ: ECPG) is one of 6 publicly-traded companies in the “Short-term business credit” industry, but how does it weigh in compared to its rivals? We will compare Encore Capital Group to similar businesses based on the strength of its profitability, risk, institutional ownership, analyst recommendations, valuation, dividends and earnings.
Insider & Institutional Ownership
19.5% of shares of all “Short-term business credit” companies are owned by institutional investors. 1.8% of Encore Capital Group shares are owned by insiders. Comparatively, 26.9% of shares of all “Short-term business credit” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Encore Capital Group has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500. Comparatively, Encore Capital Group’s rivals have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Encore Capital Group and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Encore Capital Group||0||1||5||0||2.83|
|Encore Capital Group Competitors||30||66||70||5||2.29|
Encore Capital Group presently has a consensus price target of $38.50, indicating a potential upside of 36.33%. As a group, “Short-term business credit” companies have a potential upside of 30.55%. Given Encore Capital Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Encore Capital Group is more favorable than its rivals.
This table compares Encore Capital Group and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Encore Capital Group||8.51%||20.21%||3.07%|
|Encore Capital Group Competitors||8.27%||-98.50%||-12.37%|
Earnings and Valuation
This table compares Encore Capital Group and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Encore Capital Group||$1.36 billion||$115.89 million||5.67|
|Encore Capital Group Competitors||$294.58 million||$15.78 million||0.38|
Encore Capital Group has higher revenue and earnings than its rivals. Encore Capital Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Encore Capital Group beats its rivals on 10 of the 13 factors compared.
About Encore Capital Group
Encore Capital Group, Inc., a specialty finance company, together with its subsidiaries, provides debt recovery solutions and other related services for consumers across a range of 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 early stage collections, business process outsourcing, contingent collections, and trace services and litigation activities; and the management of non-performing loans, as well as provides portfolio management services to banks for non-performing loans. Encore Capital Group, Inc. was founded in 1998 and is headquartered in San Diego, California.
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