Encore Capital Group (NASDAQ:ECPG) and Plumas Bancorp (NASDAQ:PLBC) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
This table compares Encore Capital Group and Plumas Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Encore Capital Group||6.13%||19.38%||2.70%|
Insider & Institutional Ownership
20.2% of Plumas Bancorp shares are owned by institutional investors. 1.8% of Encore Capital Group shares are owned by company insiders. Comparatively, 11.8% of Plumas Bancorp 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.
Valuation & Earnings
This table compares Encore Capital Group and Plumas Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Encore Capital Group||$1.19 billion||0.71||$83.22 million||$4.01||6.84|
|Plumas Bancorp||$37.23 million||3.10||$8.18 million||N/A||N/A|
Encore Capital Group has higher revenue and earnings than Plumas Bancorp.
Risk & Volatility
Encore Capital Group has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Plumas Bancorp has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.
Plumas Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Encore Capital Group does not pay a dividend. Plumas Bancorp has increased its dividend for 2 consecutive years.
This is a summary of current ratings and recommmendations for Encore Capital Group and Plumas Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Encore Capital Group||0||2||3||0||2.60|
Encore Capital Group currently has a consensus price target of $43.00, indicating a potential upside of 56.71%. Given Encore Capital Group’s higher possible upside, equities research analysts plainly believe Encore Capital Group is more favorable than Plumas Bancorp.
Plumas Bancorp beats Encore Capital Group on 8 of the 14 factors compared between the two stocks.
Encore Capital Group Company Profile
Encore Capital Group, Inc., a specialty finance company, together with its subsidiaries, provides debt recovery solutions and other related services for consumers across a range of 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 debt collection and management activities; and the management of non-performing loans. In addition, the company provides portfolio management services to banks for non-performing loans; and financial solutions to individuals who have previously defaulted on their obligations. Further, it focuses on consumer non-performing loans, including insolvencies, and bank and non-bank receivables. Encore Capital Group, Inc. was founded in 1998 and is headquartered in San Diego, California.
Plumas Bancorp Company Profile
Plumas Bancorp operates as the holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company offers various deposit products, such as checking, interest-bearing checking, public funds and business sweep, savings, and retirement accounts, as well as time and remote deposits. Its loan portfolio comprises consumer, home equity, and automobile loans; real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans; land development and construction loans; and credit lines. The company also provides cashier's check, bank-by-mail, automated teller machine (ATM), night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services, as well as telephone and mobile banking services, including mobile deposit and Internet banking services with bill-pay options. It operates 11 branches located in the California, including Alturas, Chester, Fall River Mills, Greenville, Kings Beach, Portola, Quincy, Redding, Susanville, Tahoe City, and Truckee; a branch in Reno, Nevada; a lending office in Auburn, California; and commercial/agricultural lending offices in Chico, California and Klamath Falls, Oregon, as well as 16 ATMs. Plumas Bancorp was founded in 1980 and is headquartered in Quincy, California.
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