Mitsubishi HC Capital (OTCMKTS:MIUFY) & Encore Capital Group (NASDAQ:ECPG) Critical Contrast

Encore Capital Group (NASDAQ:ECPG) and Mitsubishi HC Capital (OTCMKTS:MIUFY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Encore Capital Group and Mitsubishi HC Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Encore Capital Group	0	0	5	1	3.17
Mitsubishi HC Capital	0	0	0	0	0.00

Encore Capital Group currently has a consensus price target of $89.75, indicating a potential downside of 11.39%. Given Encore Capital Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Encore Capital Group is more favorable than Mitsubishi HC Capital.

Valuation and Earnings

This table compares Encore Capital Group and Mitsubishi HC Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Encore Capital Group	$1.77 billion	1.21	$256.83 million	$13.21	7.67
Mitsubishi HC Capital	N/A	N/A	N/A	$88.45	0.20

Encore Capital Group has higher revenue and earnings than Mitsubishi HC Capital. Mitsubishi HC Capital is trading at a lower price-to-earnings ratio than Encore Capital Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Encore Capital Group and Mitsubishi HC Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Encore Capital Group	15.86%	29.83%	5.58%
Mitsubishi HC Capital	N/A	N/A	N/A

Summary

Encore Capital Group beats Mitsubishi HC Capital on 9 of the 10 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 Mitsubishi HC Capital

Mitsubishi HC Capital Inc., together with its subsidiaries, engages in the lease, installment sale, and other financing activities in Japan, Europe, the Americas, China, and ASEAN region. The company operates through Customer Solutions, Global Business, Environment & Energy, Aviation, Logistics, Real Estate, and Mobility segments. The company engages in the finance solution business; leasing, management, and development of real estate; rental and leasing; auto leasing services; investment in environment and energy-related companies; renewable energy and infrastructure business; and renewable energy business. In addition, it offers aircraft leasing and aircraft engine leasing; marine container and railway freight car leasing; and asset management services. Mitsubishi HC Capital Inc. was incorporated in 1971 and is based in Chiyoda, Japan.