Altisource Portfolio Solutions (NASDAQ: ASPS) and Leju (NYSE:LEJU) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Altisource Portfolio Solutions and Leju’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altisource Portfolio Solutions 0.23% 81.23% 8.44%
Leju -45.44% -48.27% -32.60%

Institutional and Insider Ownership

53.6% of Altisource Portfolio Solutions shares are owned by institutional investors. Comparatively, 4.0% of Leju shares are owned by institutional investors. 6.8% of Altisource Portfolio Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Altisource Portfolio Solutions and Leju, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altisource Portfolio Solutions 0 2 0 0 2.00
Leju 1 0 0 0 1.00

Altisource Portfolio Solutions presently has a consensus price target of $20.50, suggesting a potential downside of 22.70%. Leju has a consensus price target of $2.10, suggesting a potential upside of 36.36%. Given Leju’s higher probable upside, analysts plainly believe Leju is more favorable than Altisource Portfolio Solutions.

Valuation and Earnings

This table compares Altisource Portfolio Solutions and Leju’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altisource Portfolio Solutions $942.60 million 0.50 $28.69 million $0.12 221.00
Leju $559.51 million 0.37 -$9.78 million ($1.21) -1.27

Altisource Portfolio Solutions has higher revenue and earnings than Leju. Leju is trading at a lower price-to-earnings ratio than Altisource Portfolio Solutions, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Altisource Portfolio Solutions has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Leju has a beta of 2.98, meaning that its stock price is 198% more volatile than the S&P 500.

Summary

Altisource Portfolio Solutions beats Leju on 10 of the 12 factors compared between the two stocks.

Altisource Portfolio Solutions Company Profile

Altisource Portfolio Solutions S.A. is a marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. The Company’s business processes, vendor and electronic payment management software and behavioral science-based analytics manage outcomes for marketplace participants. It operates through three segments: Mortgage Services, Financial Services and Technology Services. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies. The Financial Services segment provides collection services to debt originators and servicers and customer relationship management services. The Technology Services segment provides software and data analytics solutions that support management of mortgage and real estate activities and marketplace transactions across mortgage and real estate lifecycles and information technology infrastructure management services.

Leju Company Profile

Leju Holdings Limited is an online to offline (O2O), real estate services provider in China. The Company offers real estate e-commerce, online advertising and online listing services through its online platform, which consists of local Websites covering over 260 cities and various mobile applications. The Company integrates its online platform with offline services to facilitate residential property transactions. In addition to its own Websites, the Company operates various real estate and home furnishing Websites of SINA Corporation (SINA). Its O2O services for new residential properties include selling discount coupons and facilitating online property viewing, physical property visits, marketing events and pre-sale customer support. It sells advertising primarily on the SINA new residential properties and home furnishing Websites, which are operated by the Company.

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