Critical Review: Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) and Consumer Portfolio Services (NASDAQ:CPSS)

Valuation and Earnings

This table compares Consumer Portfolio Services and Grupo Financiero Banorte SAB de CV”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consumer Portfolio Services	$393.51 million	0.51	$19.20 million	$0.79	11.86
Grupo Financiero Banorte SAB de CV	$22.72 billion	1.08	$3.08 billion	$5.41	8.03

Grupo Financiero Banorte SAB de CV has higher revenue and earnings than Consumer Portfolio Services. Grupo Financiero Banorte SAB de CV 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.

Risk & Volatility

Consumer Portfolio Services has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Grupo Financiero Banorte SAB de CV has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

47.6% of Consumer Portfolio Services shares are owned by institutional investors. Comparatively, 0.0% of Grupo Financiero Banorte SAB de CV shares are owned by institutional investors. 69.0% of Consumer Portfolio Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Consumer Portfolio Services and Grupo Financiero Banorte SAB de CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consumer Portfolio Services	4.72%	6.68%	0.55%
Grupo Financiero Banorte SAB de CV	13.21%	21.51%	2.16%

Summary

Grupo Financiero Banorte SAB de CV beats Consumer Portfolio Services on 7 of the 11 factors compared between the two stocks.

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.

About Grupo Financiero Banorte SAB de CV

Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, engages in the provision of banking and financial products and services in Mexico and internationally. The company accepts checking, current, retirement, and payroll accounts; and provides loans, including mortgage, car, payroll, personal, structured, syndicated, SME loans, and credit cards, as well as letter of credit financing, acquisition funding, and import and export foreign trade financing. It is also involved in investment planning, foreign currency purchase/sale, financial advice, brokerage, asset management, investment banking, letters of credit, bank guarantees, and leasing and factoring activities. In addition, the company sells mutual funds and debt and capital instruments; issues debit cards; and provides insurance services for car, home, life, medical, employee, and SMEs, as well as cash management services for collection, trustees, payroll, and lines of credit. Further, it provides online banking, POS, payment, reconciliation, documentary collection, import bills of exchange discount, International wire transfer, remittances, storage, inventory management, logistics, marketing, and payroll services. The company was founded in 1899 and is based in Mexico City, Mexico.