Comparing Consumer Portfolio Services (NASDAQ:CPSS) & TeraWulf (NASDAQ:WULF)

Consumer Portfolio Services (NASDAQ:CPSS) and TeraWulf (NASDAQ:WULF) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Earnings & Valuation

This table compares Consumer Portfolio Services and TeraWulf’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consumer Portfolio Services	$204.82 million	1.00	$45.34 million	$1.44	6.78
TeraWulf	$100.13 million	17.34	-$73.42 million	N/A	N/A

Consumer Portfolio Services has higher revenue and earnings than TeraWulf.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Consumer Portfolio Services	10.01%	13.44%	1.24%
TeraWulf	-56.70%	-30.00%	-16.17%

Volatility & Risk

Consumer Portfolio Services has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Consumer Portfolio Services and TeraWulf, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consumer Portfolio Services	0	0	0	0	N/A
TeraWulf	0	0	8	1	3.11

TeraWulf has a consensus target price of $5.21, indicating a potential downside of 0.05%. Given TeraWulf’s higher probable upside, analysts plainly believe TeraWulf is more favorable than Consumer Portfolio Services.

Institutional & Insider Ownership

47.6% of Consumer Portfolio Services shares are owned by institutional investors. Comparatively, 62.5% of TeraWulf shares are owned by institutional investors. 67.7% of Consumer Portfolio Services shares are owned by company insiders. Comparatively, 24.9% of TeraWulf shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

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 TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.