Head to Head Review: CarePayment Technologies (OTCMKTS:CPYT) vs. Encore Capital Group (NASDAQ:ECPG)

Encore Capital Group (NASDAQ:ECPG) and CarePayment Technologies (OTCMKTS:CPYT) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Profitability

This table compares Encore Capital Group and CarePayment Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Encore Capital Group	-15.43%	11.12%	2.40%
CarePayment Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Encore Capital Group and CarePayment Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Encore Capital Group	0	0	3	1	3.25
CarePayment Technologies	0	0	0	0	N/A

Encore Capital Group currently has a consensus price target of $60.67, indicating a potential upside of 29.05%. Given Encore Capital Group’s higher possible upside, research analysts clearly believe Encore Capital Group is more favorable than CarePayment Technologies.

Risk & Volatility

Encore Capital Group has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, CarePayment Technologies has a beta of -0.51, suggesting that its share price is 151% less volatile than the S&P 500.

Earnings & Valuation

This table compares Encore Capital Group and CarePayment Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Encore Capital Group	$1.27 billion	0.87	-$206.49 million	($8.58)	-5.43
CarePayment Technologies	N/A	N/A	N/A	N/A	N/A

CarePayment Technologies has lower revenue, but higher earnings than Encore Capital Group.

Summary

Encore Capital Group beats CarePayment Technologies on 7 of the 8 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 CarePayment Technologies

CarePayment Technologies, Inc. provides accounts receivable services in the United States. It offers services for accounts receivables generated by healthcare providers in connection with providing healthcare services to their patients under the CarePayment brand name. The company was formerly known as microHelix, Inc. CarePayment Technologies, Inc. was founded in 1991 and is based in Lake Oswego, Oregon.