Head-To-Head Contrast: Credit Acceptance (CACC) vs. The Competition

Credit Acceptance (NASDAQ: CACC) is one of 16 public companies in the “Personal credit institutions” industry, but how does it compare to its rivals? We will compare Credit Acceptance to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, institutional ownership, profitability and earnings.

Profitability

This table compares Credit Acceptance and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Credit Acceptance 40.83% 29.86% 9.02%
Credit Acceptance Competitors 15.91% 26.68% 2.55%

Earnings and Valuation

This table compares Credit Acceptance and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Credit Acceptance $1.67 billion $421.00 million 11.11
Credit Acceptance Competitors $2.41 billion $325.50 million 16.86

Credit Acceptance’s rivals have higher revenue, but lower earnings than Credit Acceptance. Credit Acceptance is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

67.8% of Credit Acceptance shares are held by institutional investors. Comparatively, 60.5% of shares of all “Personal credit institutions” companies are held by institutional investors. 5.2% of Credit Acceptance shares are held by insiders. Comparatively, 18.8% of shares of all “Personal credit institutions” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Credit Acceptance and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Credit Acceptance 1 3 0 0 1.75
Credit Acceptance Competitors 191 843 1062 62 2.46

Credit Acceptance presently has a consensus price target of $370.75, suggesting a potential downside of 12.75%. As a group, “Personal credit institutions” companies have a potential downside of 22.68%. Given Credit Acceptance’s higher possible upside, research analysts clearly believe Credit Acceptance is more favorable than its rivals.

Volatility & Risk

Credit Acceptance has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Credit Acceptance’s rivals have a beta of 1.38, indicating that their average stock price is 38% more volatile than the S&P 500.

Summary

Credit Acceptance rivals beat Credit Acceptance on 7 of the 13 factors compared.

About Credit Acceptance

Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers. It is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. Credit Acceptance Corporation was founded in 1972 and is headquartered in Southfield, Michigan.

Receive News & Ratings for Credit Acceptance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Credit Acceptance and related companies with MarketBeat.com's FREE daily email newsletter.