Blucora (NASDAQ: BCOR) and Consumer Portfolio Services (NASDAQ:CPSS) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
This is a summary of current ratings and target prices for Blucora and Consumer Portfolio Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Consumer Portfolio Services||0||0||1||0||3.00|
Blucora presently has a consensus price target of $25.31, indicating a potential downside of 5.92%. Consumer Portfolio Services has a consensus price target of $6.00, indicating a potential upside of 66.67%. Given Consumer Portfolio Services’ higher probable upside, analysts clearly believe Consumer Portfolio Services is more favorable than Blucora.
This table compares Blucora and Consumer Portfolio Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Consumer Portfolio Services||0.87%||9.88%||0.77%|
Insider and Institutional Ownership
96.8% of Blucora shares are owned by institutional investors. Comparatively, 47.2% of Consumer Portfolio Services shares are owned by institutional investors. 14.1% of Blucora shares are owned by company insiders. Comparatively, 37.5% of Consumer Portfolio Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Blucora and Consumer Portfolio Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blucora||$509.56 million||2.47||$27.03 million||$1.22||22.05|
|Consumer Portfolio Services||$434.38 million||0.18||$3.76 million||$0.80||4.50|
Blucora has higher revenue and earnings than Consumer Portfolio Services. Consumer Portfolio Services is trading at a lower price-to-earnings ratio than Blucora, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Blucora has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.
Blucora beats Consumer Portfolio Services on 10 of the 13 factors compared between the two stocks.
Blucora Company Profile
Blucora, Inc. provides technology-enabled financial solutions to consumers, small business owners, and tax professionals in the United States. The company operates through two segments, Wealth Management and Tax Preparation. The Wealth Management segment offers an integrated platform of brokerage, investment advisory, and insurance services to financial advisors. The Tax Preparation segment provides digital do-it-yourself tax preparation solutions for consumers and small business owners through TaxAct.com; and ancillary services, including refund payment transfer, audit defense, stored value cards, retirement investment accounts, tax preparation support services, data archive services, and e-filing services. This segment also offers professional tax preparer software. The company was formerly known as InfoSpace, Inc. and changed its name to Blucora, Inc. in June 2012. Blucora, Inc. was founded in 1996 and is headquartered in Irving, Texas.
Consumer Portfolio Services Company Profile
Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. The company 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 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. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. Consumer Portfolio Services, Inc. was founded in 1991 and is headquartered in Irvine, California.
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