LM Funding America (NASDAQ:LMFA) and Consumer Portfolio Services (NASDAQ:CPSS) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Valuation & Earnings
This table compares LM Funding America and Consumer Portfolio Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LM Funding America||$4.39 million||0.45||-$8.62 million||N/A||N/A|
|Consumer Portfolio Services||$434.38 million||0.20||$3.76 million||$0.80||4.64|
This table compares LM Funding America and Consumer Portfolio Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LM Funding America||-164.66%||-1,791.80%||-270.85%|
|Consumer Portfolio Services||-0.11%||7.81%||0.60%|
Volatility and Risk
LM Funding America has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for LM Funding America and Consumer Portfolio Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LM Funding America||0||0||0||0||N/A|
|Consumer Portfolio Services||0||0||2||0||3.00|
Consumer Portfolio Services has a consensus price target of $5.50, suggesting a potential upside of 48.25%. Given Consumer Portfolio Services’ higher probable upside, analysts plainly believe Consumer Portfolio Services is more favorable than LM Funding America.
Insider and Institutional Ownership
1.6% of LM Funding America shares are held by institutional investors. Comparatively, 41.7% of Consumer Portfolio Services shares are held by institutional investors. 38.6% of LM Funding America shares are held by insiders. Comparatively, 46.2% of Consumer Portfolio Services shares are held by 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.
Consumer Portfolio Services beats LM Funding America on 9 of the 11 factors compared between the two stocks.
LM Funding America Company Profile
LM Funding America, Inc., through its subsidiary, LM Funding, LLC, operates as a specialty finance company. It provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois. The company offers funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty program. The company was founded in 2008 and is based in Tampa, Florida.
Consumer Portfolio Services Company Profile
Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It purchases and services 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, low incomes, or past credit problems. It serves as an alternative source of financing for dealers, facilitating sales to customers who might not be able to obtain financing from commercial banks, credit unions, and the captive finance companies. The company also acquires installment purchase contracts in four merger and acquisition transactions; and offers financing directly to sub-prime consumers to facilitate their purchase of a new or used automobile, light truck, or passenger van. Consumer Portfolio Services, Inc. services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was founded in 1991 and is headquartered in Irvine, California.
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