Analyzing Consumer Portfolio Services (NASDAQ:CPSS) and Iris Energy (NASDAQ:IREN)

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

Valuation and Earnings

This table compares Consumer Portfolio Services and Iris Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consumer Portfolio Services	$352.01 million	0.46	$45.34 million	$1.79	4.28
Iris Energy	$75.51 million	4.91	-$171.87 million	N/A	N/A

Consumer Portfolio Services has higher revenue and earnings than Iris Energy.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Consumer Portfolio Services and Iris Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consumer Portfolio Services	0	0	0	0	N/A
Iris Energy	0	0	6	0	3.00

Iris Energy has a consensus price target of $12.00, suggesting a potential upside of 115.83%. Given Iris Energy’s higher possible upside, analysts plainly believe Iris Energy is more favorable than Consumer Portfolio Services.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Consumer Portfolio Services	12.88%	17.46%	1.58%
Iris Energy	N/A	N/A	N/A

Institutional and Insider Ownership

47.6% of Consumer Portfolio Services shares are held by institutional investors. Comparatively, 41.1% of Iris Energy shares are held by institutional investors. 67.7% of Consumer Portfolio Services shares are held by insiders. Comparatively, 21.6% of Iris Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Consumer Portfolio Services has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500. Comparatively, Iris Energy has a beta of 3.01, meaning that its stock price is 201% more volatile than the S&P 500.

Summary

Consumer Portfolio Services beats Iris Energy on 7 of the 11 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 Iris Energy

Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.