HL Acquisitions (NASDAQ:LPRO) versus Santander Consumer USA (NASDAQ:SC) Critical Review

HL Acquisitions (NASDAQ:LPRO) and Santander Consumer USA (NYSE:SC) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for HL Acquisitions and Santander Consumer USA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HL Acquisitions 0 0 4 0 3.00
Santander Consumer USA 2 3 1 0 1.83

HL Acquisitions presently has a consensus price target of $22.00, suggesting a potential downside of 3.93%. Santander Consumer USA has a consensus price target of $19.08, suggesting a potential upside of 4.17%. Given Santander Consumer USA’s higher probable upside, analysts clearly believe Santander Consumer USA is more favorable than HL Acquisitions.

Risk and Volatility

HL Acquisitions has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Santander Consumer USA has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Institutional & Insider Ownership

19.7% of HL Acquisitions shares are held by institutional investors. 20.0% of HL Acquisitions shares are held by insiders. Comparatively, 0.1% of Santander Consumer USA shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares HL Acquisitions and Santander Consumer USA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HL Acquisitions N/A N/A $2.59 million N/A N/A
Santander Consumer USA $7.86 billion 0.74 $994.37 million $2.86 6.41

Santander Consumer USA has higher revenue and earnings than HL Acquisitions.

Profitability

This table compares HL Acquisitions and Santander Consumer USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HL Acquisitions N/A -311.73% -6.62%
Santander Consumer USA 3.47% 4.50% 0.58%

Summary

Santander Consumer USA beats HL Acquisitions on 7 of the 11 factors compared between the two stocks.

HL Acquisitions Company Profile

Open Lending Corporation provides lending enablement and risk analytics to credit unions, regional banks, and captive finance companies in the United States. It offers Lenders Protection Program, an auto lending enablement platform that allows financial institutions and other auto lenders to model their specific overhead and funding costs, as well as set desired ROA target for their insured portfolio; and features default insurance coverage for near-prime and non-prime automobile loans. The company also provides loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.

Santander Consumer USA Company Profile

Santander Consumer USA Holdings Inc., a specialized consumer finance company, provides vehicle finance and third-party servicing in the United States. Its products and services include retail installment contracts and vehicle leases, as well as dealer loans for inventory, construction, real estate, working capital, and revolving lines of credit. The company also offers financial products and services related to recreational and marine vehicles; originates vehicle loans through a Web-based direct lending program; purchases vehicle retail installment contracts from other lenders; and services automobile, and recreational and marine vehicle portfolios for other lenders. In addition, it provides private-label credit cards and other consumer finance products, as well as point-of-sale financing. The company was founded in 1995 and is headquartered in Dallas, Texas. Santander Consumer USA Holdings Inc. is a subsidiary of Santander Holdings USA, Inc.

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