Encore Capital Group (NASDAQ:ECPG – Get Free Report) and Credit Saison (OTCMKTS:CSASF – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Profitability
This table compares Encore Capital Group and Credit Saison’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Encore Capital Group | 16.00% | 30.70% | 5.58% |
| Credit Saison | N/A | N/A | N/A |
Earnings & Valuation
This table compares Encore Capital Group and Credit Saison”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Encore Capital Group | $1.77 billion | 1.20 | $256.83 million | $12.89 | 7.67 |
| Credit Saison | N/A | N/A | N/A | C$144.02 | 0.16 |
Encore Capital Group has higher revenue and earnings than Credit Saison. Credit Saison is trading at a lower price-to-earnings ratio than Encore Capital Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
26.3% of Credit Saison shares are owned by institutional investors. 3.0% of Encore Capital Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Encore Capital Group and Credit Saison, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Encore Capital Group | 0 | 1 | 5 | 0 | 2.83 |
| Credit Saison | 0 | 0 | 0 | 0 | 0.00 |
Encore Capital Group presently has a consensus price target of $89.75, suggesting a potential downside of 9.21%. Given Encore Capital Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Encore Capital Group is more favorable than Credit Saison.
Summary
Encore Capital Group beats Credit Saison on 9 of the 11 factors compared between the two stocks.
About Encore Capital Group
Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across 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 provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.
About Credit Saison
Credit Saison Co., Ltd. provides leasing, finance, real estate, entertainment, and payment services in Japan and internationally. The company offers credit cards, prepaid and debit cards, smartphone-based services, and information processing services; internet advertisement agency; marketing consulting; temporary staffing; and contracting services. It also engages in the credit guarantee and finance related businesses; real estate business; real estate leasing activities; and digital marketing and asset management services, as well as develops and manages amusement. Further, it involved in the import and sell of lifestyle goods; cleaning, security, and property maintenance services; debt collection; personal loan; life/non-life insurance agency; online ticket system and payment services; digital lending; and sells information security and office disaster prevention related services, etc. The company was formerly known as Seibu Credit Co., Ltd. and changed its name to Credit Saison Co., Ltd. in October 1989. Credit Saison Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.
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