Ellington Credit (NYSE:EARN – Get Free Report) and Altisource Portfolio Solutions (NASDAQ:ASPS – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.
Risk and Volatility
Ellington Credit has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Altisource Portfolio Solutions has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Ellington Credit and Altisource Portfolio Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ellington Credit | 0 | 1 | 1 | 0 | 2.50 |
| Altisource Portfolio Solutions | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Ellington Credit and Altisource Portfolio Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ellington Credit | -21.82% | 17.67% | 3.74% |
| Altisource Portfolio Solutions | -4.10% | N/A | -8.68% |
Valuation & Earnings
This table compares Ellington Credit and Altisource Portfolio Solutions”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ellington Credit | $15.88 million | 13.29 | $6.59 million | ($0.13) | -43.23 |
| Altisource Portfolio Solutions | $160.13 million | 0.72 | -$35.64 million | ($4.36) | -2.41 |
Ellington Credit has higher earnings, but lower revenue than Altisource Portfolio Solutions. Ellington Credit is trading at a lower price-to-earnings ratio than Altisource Portfolio Solutions, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
20.4% of Ellington Credit shares are held by institutional investors. Comparatively, 41.4% of Altisource Portfolio Solutions shares are held by institutional investors. 1.4% of Ellington Credit shares are held by insiders. Comparatively, 2.3% of Altisource Portfolio Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Ellington Credit beats Altisource Portfolio Solutions on 9 of the 14 factors compared between the two stocks.
About Ellington Credit
Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS, such as non-agency CMOs, such as investment grade and non-investment grade. 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 formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is based in Old Greenwich, Connecticut.
About Altisource Portfolio Solutions
Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.
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