Consumer Portfolio Services (NASDAQ: CPSS) and America First Multifamily Investors (NASDAQ:ATAX) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Earnings and Valuation
This table compares Consumer Portfolio Services and America First Multifamily Investors’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Consumer Portfolio Services||$434.38 million||0.20||$3.76 million||$0.80||5.20|
|America First Multifamily Investors||$70.38 million||5.47||$30.59 million||$0.44||14.49|
America First Multifamily Investors has lower revenue, but higher earnings than Consumer Portfolio Services. Consumer Portfolio Services is trading at a lower price-to-earnings ratio than America First Multifamily Investors, indicating that it is currently the more affordable of the two stocks.
This table compares Consumer Portfolio Services and America First Multifamily Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Consumer Portfolio Services||0.56%||9.21%||0.72%|
|America First Multifamily Investors||35.12%||9.48%||2.73%|
America First Multifamily Investors pays an annual dividend of $0.50 per share and has a dividend yield of 7.8%. Consumer Portfolio Services does not pay a dividend. America First Multifamily Investors pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current recommendations for Consumer Portfolio Services and America First Multifamily Investors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Consumer Portfolio Services||0||0||2||0||3.00|
|America First Multifamily Investors||0||2||0||0||2.00|
Consumer Portfolio Services presently has a consensus price target of $6.00, suggesting a potential upside of 44.23%. America First Multifamily Investors has a consensus price target of $6.00, suggesting a potential downside of 5.88%. Given Consumer Portfolio Services’ stronger consensus rating and higher probable upside, analysts plainly believe Consumer Portfolio Services is more favorable than America First Multifamily Investors.
Risk & Volatility
Consumer Portfolio Services has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, America First Multifamily Investors has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
Insider & Institutional Ownership
45.7% of Consumer Portfolio Services shares are held by institutional investors. Comparatively, 6.5% of America First Multifamily Investors shares are held by institutional investors. 37.5% of Consumer Portfolio Services shares are held by company insiders. Comparatively, 1.3% of America First Multifamily Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Consumer Portfolio Services beats America First Multifamily Investors on 9 of the 16 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 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.
About America First Multifamily Investors
America First Multifamily Investors, L.P. acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction or permanent financing for multifamily and student housing, and residential and commercial properties. It operates through four segments: Mortgage Revenue Bond Investments, MF Properties, Public housing Capital Fund Trust, and Other Investments. As of December 31, 2017, the company owned 87 MRBs, of which various bonds were issued by state and local housing authorities in order to provide construction or permanent financing for 63 residential properties comprising a total of 10,666 rental units located in 14 states in the United States. America First Capital Associates Limited Partnership Two serves as the general partner of the company. America First Multifamily Investors, L.P. was founded in 1998 and is based in Omaha, Nebraska.
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