CPI Card Group (NASDAQ: PMTS) and Consumer Portfolio Services (NASDAQ:CPSS) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitabiliy and valuation.

Analyst Ratings

This is a summary of current recommendations for CPI Card Group and Consumer Portfolio Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CPI Card Group 1 3 2 0 2.17
Consumer Portfolio Services 0 1 1 0 2.50

CPI Card Group presently has a consensus price target of $6.25, indicating a potential upside of 104.92%. Consumer Portfolio Services has a consensus price target of $6.00, indicating a potential upside of 28.48%. Given CPI Card Group’s higher possible upside, research analysts plainly believe CPI Card Group is more favorable than Consumer Portfolio Services.

Risk and Volatility

CPI Card Group has a beta of -0.19, indicating that its share price is 119% less volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Profitability

This table compares CPI Card Group and Consumer Portfolio Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CPI Card Group -1.73% -3.79% 1.33%
Consumer Portfolio Services 6.19% 14.62% 1.11%

Valuation & Earnings

This table compares CPI Card Group and Consumer Portfolio Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CPI Card Group $278.32 million 0.61 $34.56 million ($0.09) -33.89
Consumer Portfolio Services $162.02 million 0.67 $21.52 million $0.93 5.02

CPI Card Group has higher revenue and earnings than Consumer Portfolio Services. CPI Card Group 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.

Dividends

CPI Card Group pays an annual dividend of $0.18 per share and has a dividend yield of 5.9%. Consumer Portfolio Services does not pay a dividend. CPI Card Group pays out -200.0% of its earnings in the form of a dividend.

Institutional & Insider Ownership

22.3% of CPI Card Group shares are held by institutional investors. Comparatively, 47.5% of Consumer Portfolio Services shares are held by institutional investors. 4.6% of CPI Card Group shares are held by company insiders. Comparatively, 37.5% of Consumer Portfolio Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

CPI Card Group Company Profile

CPI Card Group Inc., formerly CPI Holdings I, Inc., provides Financial Payment Card solutions in North America. The Company is engaged in the design, production, data personalization, packaging and fulfillment of Financial Payment Cards, which it defines as credit cards, debit cards and prepaid debit cards issued on the networks of the Payment Card Brands in the United States, Europe and Canada. It is also engaged in the design, production, data personalization, packaging and fulfillment of retail gift and loyalty cards. Its segments include U.S. Debit and Credit, which produces Financial Payment Cards and provides integrated card services to card-issuing banks in the United States; U.S. Prepaid Debit, which provides integrated card services to Prepaid Debit Card issuers in the United States; U.K. Limited, which produces retail cards for customers in the United Kingdom and continental Europe, and Other, which has operations in Ontario, Canada and Petersfield, United Kingdom.

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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