FlexShopper (NASDAQ:FPAY – Get Free Report) and Consumer Portfolio Services (NASDAQ:CPSS – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Institutional and Insider Ownership
19.4% of FlexShopper shares are owned by institutional investors. Comparatively, 47.6% of Consumer Portfolio Services shares are owned by institutional investors. 30.2% of FlexShopper shares are owned by company insiders. Comparatively, 63.7% of Consumer Portfolio Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for FlexShopper and Consumer Portfolio Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FlexShopper | 1 | 0 | 1 | 0 | 2.00 |
| Consumer Portfolio Services | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares FlexShopper and Consumer Portfolio Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FlexShopper | N/A | N/A | N/A |
| Consumer Portfolio Services | 4.53% | 6.49% | 0.53% |
Risk and Volatility
FlexShopper has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
Valuation & Earnings
This table compares FlexShopper and Consumer Portfolio Services”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FlexShopper | $139.80 million | 0.00 | -$180,000.00 | ($0.23) | N/A |
| Consumer Portfolio Services | $393.51 million | 0.46 | $19.20 million | $0.80 | 10.30 |
Consumer Portfolio Services has higher revenue and earnings than FlexShopper. FlexShopper 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.
Summary
Consumer Portfolio Services beats FlexShopper on 10 of the 13 factors compared between the two stocks.
About FlexShopper
FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories. It also provides payment options to consumers. The company offers its products under the LG, Samsung, Sony, TCL, Frigidaire, General Electric, Whirlpool, Apple, Asus, Dell, Hewlett Packard, Toshiba, Resident, Sealy, and Ashley brands. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.
About Consumer Portfolio Services
Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It is involved in the purchase and service of retail automobile contracts originated by franchised automobile dealers and select independent dealers in the sale of new and used automobiles, light trucks, and passenger vans. The company, through its automobile contract purchases, offers indirect financing to the customers of dealers with limited credit histories or past credit problems. It also serves as an alternative source of financing for dealers, facilitating sales to customers who are not able to obtain financing from commercial banks, credit unions, and the captive finance companies. In addition, the company acquires installment purchase contracts in merger and acquisition transactions; purchases immaterial amounts of vehicle purchase money loans from non-affiliated lenders. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was incorporated in 1991 and is based in Las Vegas, Nevada.
Receive News & Ratings for FlexShopper Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FlexShopper and related companies with MarketBeat.com's FREE daily email newsletter.
