Blackhawk Network Holdings (NASDAQ:HAWK) & Consumer Portfolio Services (CPSS) Critical Review
Blackhawk Network Holdings (NASDAQ: HAWK) and Consumer Portfolio Services (NASDAQ:CPSS) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitabiliy, institutional ownership, risk, analyst recommendations and earnings.
This table compares Blackhawk Network Holdings and Consumer Portfolio Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blackhawk Network Holdings||-0.27%||8.36%||2.41%|
|Consumer Portfolio Services||6.19%||14.62%||1.11%|
This is a summary of recent ratings for Blackhawk Network Holdings and Consumer Portfolio Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blackhawk Network Holdings||0||4||8||0||2.67|
|Consumer Portfolio Services||0||1||1||0||2.50|
Blackhawk Network Holdings presently has a consensus target price of $43.17, suggesting a potential downside of 0.99%. Consumer Portfolio Services has a consensus target price of $6.00, suggesting a potential upside of 31.87%. Given Consumer Portfolio Services’ higher probable upside, analysts clearly believe Consumer Portfolio Services is more favorable than Blackhawk Network Holdings.
Volatility and Risk
Blackhawk Network Holdings has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.
Valuation & Earnings
This table compares Blackhawk Network Holdings and Consumer Portfolio Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Blackhawk Network Holdings||$1.94 billion||1.27||$138.65 million||($0.10)||-436.00|
|Consumer Portfolio Services||$162.02 million||0.65||$21.52 million||$0.93||4.89|
Blackhawk Network Holdings has higher revenue and earnings than Consumer Portfolio Services. Blackhawk Network Holdings is trading at a lower price-to-earnings ratio than Consumer Portfolio Services, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
99.6% of Blackhawk Network Holdings shares are owned by institutional investors. Comparatively, 47.5% of Consumer Portfolio Services shares are owned by institutional investors. 3.8% of Blackhawk Network Holdings shares are owned by company insiders. Comparatively, 37.5% of Consumer Portfolio Services shares are owned 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.
Blackhawk Network Holdings beats Consumer Portfolio Services on 8 of the 14 factors compared between the two stocks.
Blackhawk Network Holdings Company Profile
Blackhawk Network Holdings, Inc. is a prepaid payment network. The Company operates through three segments: U.S. Retail, International, and Incentives & Rewards. The U.S. Retail segment is engaged in the sale of prepaid products to consumers at its retail distribution partners and online and the sale of telecom handsets to retail distribution partners for resale to consumers. Its Incentives & Rewards segment is engaged in the sale of prepaid products, software and services to its business clients. It distributes closed loop gift cards in categories, including digital media and e-commerce, dining, electronics, entertainment, fashion and travel. It distributes a range of prepaid wireless or cellular cards. It also provides reloads for reloadable prepaid products, including prepaid telecom accounts and general-purpose reloadable cards. Its incentives businesses provide software, consulting services, program management, reward processing and reward fulfillment to its business clients.
Consumer Portfolio Services Company Profile
Consumer Portfolio Services, Inc. is a specialty finance company. The Company’s business is to purchase and service retail automobile contracts originated primarily by franchised automobile dealers and by select independent dealers in the United States in the sale of new and used automobiles, light trucks and passenger vans. Through its automobile contract purchases, the Company provides indirect financing to the customers of dealers having limited credit histories, low incomes or past credit problems, who it refers to as sub-prime customers. It serves as an alternative source of financing for dealers, facilitating sales to customers. The Company offers approximately eight financing programs to its dealership customers and prices each program according to the relative credit risk. Its financing programs are Bravo, First Time Buyer, Mercury/Delta, Standard, Alpha, Alpha Plus, Super Alpha and Preferred.
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