Encore Capital Group (NASDAQ:ECPG – Get Free Report) and Manhattan Bridge Capital (NASDAQ:LOAN – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Valuation & Earnings
This table compares Encore Capital Group and Manhattan Bridge Capital”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Encore Capital Group | $1.32 billion | 0.69 | -$139.24 million | ($4.89) | -7.92 |
| Manhattan Bridge Capital | $9.69 million | 6.46 | $5.59 million | $0.47 | 11.64 |
Insider and Institutional Ownership
21.8% of Manhattan Bridge Capital shares are held by institutional investors. 2.6% of Encore Capital Group shares are held by insiders. Comparatively, 24.5% of Manhattan Bridge Capital 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.
Profitability
This table compares Encore Capital Group and Manhattan Bridge Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Encore Capital Group | -8.38% | 16.18% | 2.99% |
| Manhattan Bridge Capital | 58.44% | 12.68% | 8.03% |
Volatility and Risk
Encore Capital Group has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Manhattan Bridge Capital has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Encore Capital Group and Manhattan Bridge Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Encore Capital Group | 0 | 0 | 3 | 1 | 3.25 |
| Manhattan Bridge Capital | 0 | 0 | 0 | 0 | 0.00 |
Encore Capital Group currently has a consensus price target of $62.67, suggesting a potential upside of 61.89%. Given Encore Capital Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Encore Capital Group is more favorable than Manhattan Bridge Capital.
Summary
Manhattan Bridge Capital beats Encore Capital Group on 8 of the 15 factors compared between the two stocks.
About Encore Capital Group
Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across 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 provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.
About Manhattan Bridge Capital
Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.
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