Encore Capital Group (NASDAQ:ECPG) and Plumas Bancorp (NASDAQ:PLBC) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Encore Capital Group and Plumas Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Encore Capital Group 6.13% 19.38% 2.70%
Plumas Bancorp 27.96% 22.07% 1.72%

Risk & Volatility

Encore Capital Group has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Plumas Bancorp has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Encore Capital Group and Plumas Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Encore Capital Group 0 2 2 0 2.50
Plumas Bancorp 0 0 0 0 N/A

Encore Capital Group currently has a consensus target price of $45.50, suggesting a potential upside of 77.66%. Given Encore Capital Group’s higher probable upside, analysts clearly believe Encore Capital Group is more favorable than Plumas Bancorp.

Valuation and Earnings

This table compares Encore Capital Group and Plumas Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Encore Capital Group $1.19 billion 0.67 $83.22 million $4.01 6.39
Plumas Bancorp $37.23 million 3.47 $8.18 million N/A N/A

Encore Capital Group has higher revenue and earnings than Plumas Bancorp.

Dividends

Plumas Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Encore Capital Group does not pay a dividend.

Insider and Institutional Ownership

20.5% of Plumas Bancorp shares are owned by institutional investors. 1.8% of Encore Capital Group shares are owned by insiders. Comparatively, 11.8% of Plumas Bancorp shares are owned by 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.

Summary

Plumas Bancorp beats Encore Capital Group on 7 of the 13 factors compared between the two stocks.

Encore Capital Group Company Profile

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 debt collection and management activities; and the management of non-performing loans. In addition, the company provides portfolio management services to banks for non-performing loans; and financial solutions to individuals who have previously defaulted on their obligations. Further, it focuses on consumer non-performing loans, including insolvencies, and bank and non-bank receivables. Encore Capital Group, Inc. was founded in 1998 and is headquartered in San Diego, California.

Plumas Bancorp Company Profile

Plumas Bancorp operates as the holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company offers various deposit products, such as checking, interest-bearing checking, public funds and business sweep, savings, and retirement accounts, as well as time and remote deposits. Its loan portfolio comprises consumer, home equity, and automobile loans; real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans; land development and construction loans; and credit lines. The company also provides cashier's check, bank-by-mail, automated teller machine (ATM), night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services, as well as telephone and mobile banking services, including mobile deposit and Internet banking services with bill-pay options. It operates 11 branches located in the California, including Alturas, Chester, Fall River Mills, Greenville, Kings Beach, Portola, Quincy, Redding, Susanville, Tahoe City, and Truckee; a branch in Reno, Nevada; a lending office in Auburn, California; and commercial/agricultural lending offices in Chico, California and Klamath Falls, Oregon, as well as 16 ATMs. Plumas Bancorp was founded in 1980 and is headquartered in Quincy, California.

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