Encore Capital Group (NASDAQ: ECPG) is one of 690 public companies in the “Asset Management” industry, but how does it contrast to its rivals? We will compare Encore Capital Group to related companies based on the strength of its institutional ownership, profitability, earnings, valuation, analyst recommendations, dividends and risk.
Risk & Volatility
Encore Capital Group has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Encore Capital Group’s rivals have a beta of 1.02, suggesting that their average stock price is 2% more volatile than the S&P 500.
Institutional and Insider Ownership
32.5% of shares of all “Asset Management” companies are held by institutional investors. 1.8% of Encore Capital Group shares are held by insiders. Comparatively, 4.3% of shares of all “Asset Management” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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||10.73%||21.39%||4.57%|
This is a summary of recent ratings and target prices for Encore Capital Group and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Encore Capital Group||0||1||5||0||2.83|
|Encore Capital Group Competitors||695||3387||3805||67||2.41|
Encore Capital Group presently has a consensus price target of $38.50, suggesting a potential upside of 19.75%. As a group, “Asset Management” companies have a potential upside of 36.16%. Given Encore Capital Group’s rivals higher probable upside, analysts plainly believe Encore Capital Group has less favorable growth aspects than its rivals.
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||6.46|
|Encore Capital Group Competitors||$2.05 billion||$426.24 million||-10.65|
Encore Capital Group’s rivals have higher revenue and earnings than Encore Capital Group. 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 rivals beat Encore Capital Group on 9 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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