Consumer Portfolio Services (NASDAQ:CPSS) vs. Bread Financial (NYSE:BFH) Financial Survey

Bread Financial (NYSE:BFH) and Consumer Portfolio Services (NASDAQ:CPSS) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Profitability

This table compares Bread Financial and Consumer Portfolio Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bread Financial	11.02%	17.92%	2.61%
Consumer Portfolio Services	4.53%	6.49%	0.53%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bread Financial and Consumer Portfolio Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bread Financial	3	6	5	1	2.27
Consumer Portfolio Services	1	0	0	0	1.00

Bread Financial currently has a consensus target price of $80.09, suggesting a potential upside of 0.88%. Given Bread Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Bread Financial is more favorable than Consumer Portfolio Services.

Insider & Institutional Ownership

99.5% of Bread Financial shares are owned by institutional investors. Comparatively, 47.6% of Consumer Portfolio Services shares are owned by institutional investors. 0.9% of Bread Financial shares are owned by insiders. Comparatively, 63.7% of Consumer Portfolio Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Bread Financial has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares Bread Financial and Consumer Portfolio Services”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bread Financial	$4.70 billion	0.77	$518.00 million	$10.84	7.32
Consumer Portfolio Services	$393.51 million	0.50	$19.20 million	$0.80	11.19

Bread Financial has higher revenue and earnings than Consumer Portfolio Services. Bread Financial 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

Bread Financial beats Consumer Portfolio Services on 13 of the 15 factors compared between the two stocks.

About Bread Financial

Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. It offers its products under the Bread CashbackTM, Bread PayTM, and Bread SavingsTM brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.

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.