Financial Review: Consumer Portfolio Services (NASDAQ:CPSS) versus BB Seguridade Participacoes (OTCMKTS:BBSEY)

Consumer Portfolio Services (NASDAQ:CPSS) and BB Seguridade Participacoes (OTCMKTS:BBSEY) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares Consumer Portfolio Services and BB Seguridade Participacoes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consumer Portfolio Services	4.53%	6.49%	0.53%
BB Seguridade Participacoes	87.16%	79.01%	43.03%

Insider and Institutional Ownership

47.6% of Consumer Portfolio Services shares are held by institutional investors. Comparatively, 0.0% of BB Seguridade Participacoes shares are held by institutional investors. 63.7% of Consumer Portfolio Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Consumer Portfolio Services has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, BB Seguridade Participacoes has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Consumer Portfolio Services and BB Seguridade Participacoes, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consumer Portfolio Services	1	0	0	0	1.00
BB Seguridade Participacoes	0	1	0	0	2.00

Valuation & Earnings

This table compares Consumer Portfolio Services and BB Seguridade Participacoes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consumer Portfolio Services	$393.51 million	0.49	$19.20 million	$0.80	10.88
BB Seguridade Participacoes	$1.89 billion	6.80	$1.61 billion	$0.81	7.93

BB Seguridade Participacoes has higher revenue and earnings than Consumer Portfolio Services. BB Seguridade Participacoes is trading at a lower price-to-earnings ratio than Consumer Portfolio Services, indicating that it is currently the more affordable of the two stocks.

Summary

BB Seguridade Participacoes beats Consumer Portfolio Services on 8 of the 12 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 is involved in the purchase and service of 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 also serves as an alternative source of financing for dealers, facilitating sales to customers who are not able to obtain financing from commercial banks, credit unions, and the captive finance companies. In addition, the company acquires installment purchase contracts in merger and acquisition transactions; purchases immaterial amounts of vehicle purchase money loans from non-affiliated lenders. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was incorporated in 1991 and is based in Las Vegas, Nevada.

About BB Seguridade Participacoes

BB Seguridade Participações S.A., through its subsidiaries operates in the insurance, pension plans, and bonds, businesses in Brazil. The company operates through Security and Brokerage segments. The Security segment offers life, property, rural, special risks and financial, transport, hulls, and housing people insurance products. It also offers pension plans, dental, and capitalization plans. The Brokerage segment engages in the brokerage, management, and promotion of pension plans, capitalization, capitalization, and dental plans. BB Seguridade Participações S.A. was incorporated in 2012 and is headquartered in Brasilia, Brazil. BB Seguridade Participações S.A. operates as a subsidiary of Banco do Brasil S.A.