Analyzing Encore Capital Group (ECPG) & Its Peers
Encore Capital Group (NASDAQ: ECPG) is one of 6 publicly-traded companies in the “Short-term business credit” industry, but how does it weigh in compared to its peers? We will compare Encore Capital Group to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.
Institutional and Insider Ownership
19.5% of shares of all “Short-term business credit” companies are owned by institutional investors. 1.8% of Encore Capital Group shares are owned by company insiders. Comparatively, 26.9% of shares of all “Short-term business credit” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Encore Capital Group and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Encore Capital Group||$1.36 billion||$115.89 million||5.40|
|Encore Capital Group Competitors||$294.58 million||$15.78 million||0.22|
Encore Capital Group has higher revenue and earnings than its peers. Encore Capital Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of recent ratings for Encore Capital Group and its peers, 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||30||66||70||5||2.29|
Encore Capital Group presently has a consensus price target of $38.50, indicating a potential upside of 43.23%. As a group, “Short-term business credit” companies have a potential upside of 29.20%. Given Encore Capital Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Encore Capital Group is more favorable than its peers.
This table compares Encore Capital Group and its peers’ 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||8.27%||-98.50%||-12.37%|
Risk and Volatility
Encore Capital Group has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500. Comparatively, Encore Capital Group’s peers have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.
Encore Capital Group beats its peers on 10 of the 13 factors compared.
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 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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