Altisource Portfolio Solutions (NASDAQ: ASPS) and Nationstar Mortgage Holdings (NYSE:NSM) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
This table compares Altisource Portfolio Solutions and Nationstar Mortgage Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Altisource Portfolio Solutions||0.60%||82.95%||8.76%|
|Nationstar Mortgage Holdings||10.52%||9.64%||0.87%|
Insider & Institutional Ownership
54.9% of Altisource Portfolio Solutions shares are owned by institutional investors. Comparatively, 99.0% of Nationstar Mortgage Holdings shares are owned by institutional investors. 6.8% of Altisource Portfolio Solutions shares are owned by company insiders. Comparatively, 0.8% of Nationstar Mortgage Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Altisource Portfolio Solutions has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Nationstar Mortgage Holdings has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Earnings & Valuation
This table compares Altisource Portfolio Solutions and Nationstar Mortgage Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Altisource Portfolio Solutions||$982.54 million||0.49||$148.76 million||$0.28||94.82|
|Nationstar Mortgage Holdings||$1.42 billion||1.27||$223.77 million||$2.29||8.07|
Nationstar Mortgage Holdings has higher revenue and earnings than Altisource Portfolio Solutions. Nationstar Mortgage Holdings is trading at a lower price-to-earnings ratio than Altisource Portfolio Solutions, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Altisource Portfolio Solutions and Nationstar Mortgage Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altisource Portfolio Solutions||0||2||0||0||2.00|
|Nationstar Mortgage Holdings||2||3||5||0||2.30|
Altisource Portfolio Solutions currently has a consensus price target of $19.00, suggesting a potential downside of 28.44%. Nationstar Mortgage Holdings has a consensus price target of $18.33, suggesting a potential downside of 0.79%. Given Nationstar Mortgage Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Nationstar Mortgage Holdings is more favorable than Altisource Portfolio Solutions.
Nationstar Mortgage Holdings beats Altisource Portfolio Solutions on 10 of the 14 factors compared between the two stocks.
About Altisource Portfolio Solutions
Altisource Portfolio Solutions S.A. is a marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. The Company’s business processes, vendor and electronic payment management software and behavioral science-based analytics manage outcomes for marketplace participants. It operates through three segments: Mortgage Services, Financial Services and Technology Services. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies. The Financial Services segment provides collection services to debt originators and servicers and customer relationship management services. The Technology Services segment provides software and data analytics solutions that support management of mortgage and real estate activities and marketplace transactions across mortgage and real estate lifecycles and information technology infrastructure management services.
About Nationstar Mortgage Holdings
Nationstar Mortgage Holdings Inc. provides servicing, origination and transaction based services principally to single-family residences throughout the United States. The Company operates through three segments: Servicing, Originations and Xome. The Company provides residential loan services in the United States. The Company also operates an integrated residential loan origination platform that is primarily focused on customer retention. Its Xome subsidiary offers an array of complementary services related to the purchase and disposition of residential real estate. It provides non-bank services and residential mortgage services in the United States conducting operations through its Nationstar Mortgage and Champion Mortgage brands. It originates and purchases conventional mortgage loans conforming to the underwriting standards of the government sponsored entities, which it collectively refers to as Agency loans. The Xome segment is a provider of technology and data-enhanced solutions.
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