Analyzing Encore Capital Group (ECPG) and Orix Corp Ads (IX)
Encore Capital Group (NASDAQ: ECPG) and Orix Corp Ads (NYSE:IX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
Earnings and Valuation
This table compares Encore Capital Group and Orix Corp Ads’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Encore Capital Group||$1.01 billion||1.02||$257.54 million||$2.44||16.37|
|Orix Corp Ads||$26.10 billion||0.83||$6.19 billion||$0.96||84.76|
Orix Corp Ads has higher revenue and earnings than Encore Capital Group. Encore Capital Group is trading at a lower price-to-earnings ratio than Orix Corp Ads, indicating that it is currently the more affordable of the two stocks.
This table compares Encore Capital Group and Orix Corp Ads’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Encore Capital Group||6.28%||12.38%||1.86%|
|Orix Corp Ads||9.95%||10.88%||2.55%|
Institutional & Insider Ownership
1.9% of Orix Corp Ads shares are owned by institutional investors. 8.8% of Encore Capital Group shares are owned by insiders. Comparatively, 0.1% of Orix Corp Ads shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Encore Capital Group has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Orix Corp Ads has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.
Orix Corp Ads pays an annual dividend of $2.10 per share and has a dividend yield of 2.6%. Encore Capital Group does not pay a dividend. Orix Corp Ads pays out 218.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent ratings and target prices for Encore Capital Group and Orix Corp Ads, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Encore Capital Group||0||4||1||0||2.20|
|Orix Corp Ads||0||0||0||1||4.00|
Encore Capital Group currently has a consensus price target of $35.90, indicating a potential downside of 10.14%. Given Encore Capital Group’s higher probable upside, analysts clearly believe Encore Capital Group is more favorable than Orix Corp Ads.
Encore Capital Group beats Orix Corp Ads on 9 of the 17 factors compared between the two stocks.
About Encore Capital Group
Encore Capital Group, Inc., through its subsidiaries, is a specialty finance company providing debt recovery solutions for consumers and property owners across a range of financial assets. The Company operates through Portfolio Purchasing and Recovery segment. The Company’s geographical segments include the United States, Europe and other. The Company’s portfolios of defaulted consumer receivables at discounts and manages them by partnering with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies, commercial retailers, and telecommunication companies. Defaulted receivables also include receivables subject to bankruptcy proceedings. The Company through certain subsidiaries, is engaged in portfolio purchasing and recovery in the United States, including Puerto Rico.
About Orix Corp Ads
ORIX Corporation (ORIX) is a financial services company. The Company operates through six segments: Corporate Financial Services, which consists of lending, leasing and fee business; Maintenance Leasing, which consists of automobile leasing and rentals, car sharing, and test and measurement instruments and information technology-related equipment rentals and leasing; Real Estate, which consists of real estate development and rental, facility operation, real estate investment trust (REIT) asset management, and real estate investment advisory services; Investment and Operation, which consists of environment and energy-related business, principal investment and loan servicing (asset recovery); Retail Segment, which consists of life insurance, banking and card loan business, and Overseas Business, which consists of leasing, lending, investment in bonds, investment banking, asset management and ship- and aircraft-related operations.
Receive News & Ratings for Encore Capital Group Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encore Capital Group Inc and related companies with MarketBeat.com's FREE daily email newsletter.