Encore Capital Group (NASDAQ: ECPG) is one of 690 publicly-traded companies in the “Asset Management” industry, but how does it compare to its peers? We will compare Encore Capital Group to similar companies based on the strength of its valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Institutional and Insider Ownership
32.5% of shares of all “Asset Management” companies are owned by institutional investors. 1.8% of Encore Capital Group shares are owned by company insiders. Comparatively, 4.3% of shares of all “Asset Management” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
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||10.73%||21.39%||4.57%|
Volatility & Risk
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 peers have a beta of 1.02, suggesting that their average stock price is 2% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices 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||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 peers higher probable upside, analysts clearly believe Encore Capital Group has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares Encore Capital Group and its peers 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 peers have higher revenue and earnings than Encore Capital Group. 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.
Encore Capital Group peers 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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