Comparing Consumer Portfolio Services (NASDAQ:CPSS) and Mercurity Fintech (NASDAQ:MFH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Consumer Portfolio Services	7.22%	9.76%	0.89%
Mercurity Fintech	N/A	N/A	N/A

Volatility & Risk

Consumer Portfolio Services has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, Mercurity Fintech has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500.

Earnings & Valuation

This table compares Consumer Portfolio Services and Mercurity Fintech”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consumer Portfolio Services	$204.84 million	0.99	$45.34 million	$1.44	6.70
Mercurity Fintech	$445,928.00	186.85	-$9.36 million	N/A	N/A

Consumer Portfolio Services has higher revenue and earnings than Mercurity Fintech.

Insider and Institutional Ownership

47.6% of Consumer Portfolio Services shares are owned by institutional investors. Comparatively, 30.8% of Mercurity Fintech shares are owned by institutional investors. 67.7% of Consumer Portfolio Services shares are owned by insiders. Comparatively, 62.8% of Mercurity Fintech 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Consumer Portfolio Services and Mercurity Fintech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consumer Portfolio Services	0	0	0	0	N/A
Mercurity Fintech	0	0	0	0	N/A

Summary

Consumer Portfolio Services beats Mercurity Fintech on 8 of the 9 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 Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.