WallStSmart

Capital One Financial Corporation (COF)vsEncore Capital Group Inc (ECPG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Capital One Financial Corporation generates 2431% more annual revenue ($48.11B vs $1.90B). COF leads profitability with a 21.9% profit margin vs 15.9%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 83/100 (A-).

COF

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.0Value: 8.3Quality: 4.0
Piotroski: 2/9Altman Z: -0.36

ECPG

Exceptional Buy

83

out of 100

Grade: A-

Growth: 6.0Profit: 9.0Value: 8.3Quality: 6.0
Piotroski: 6/9Altman Z: 1.18

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COF6 strengths · Avg: 9.8/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Revenue GrowthGrowth
1111.0%10/10

Revenue surging 1111.0% year-over-year

Market CapQuality
$127.79B9/10

Large-cap with strong market position

ECPG5 strengths · Avg: 9.4/10
PEG RatioValuation
0.1710/10

Growing faster than its price suggests

P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

Operating MarginProfitability
38.0%10/10

Strong operational efficiency at 38.0%

Return on EquityProfitability
28.6%9/10

Every $100 of equity generates 29 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

COF3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-3.2%2/10

Earnings declined 3.2%

Altman Z-ScoreHealth
-0.362/10

Distress zone — elevated risk

ECPG3 concerns · Avg: 1.7/10
Free Cash FlowQuality
$-32.92M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.182/10

Distress zone — elevated risk

Debt/EquityHealth
4.521/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : COF

The strongest argument for COF centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 21.9% and operating margin at 33.6%. Revenue growth of 1111.0% demonstrates continued momentum.

Bull Case : ECPG

The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 15.9% and operating margin at 38.0%. Revenue growth of 11.3% demonstrates continued momentum.

Bear Case : COF

The primary concerns for COF are Piotroski F-Score, EPS Growth, Altman Z-Score.

Bear Case : ECPG

The primary concerns for ECPG are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.52 is elevated, increasing financial risk.

Key Dynamics to Monitor

COF profiles as a growth stock while ECPG is a mature play — different risk/reward profiles.

ECPG carries more volatility with a beta of 1.28 — expect wider price swings.

COF is growing revenue faster at 1111.0% — sustainability is the question.

COF generates stronger free cash flow (7.9B), providing more financial flexibility.

Bottom Line

ECPG scores higher overall (83/100 vs 75/100), backed by strong 15.9% margins and 11.3% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Capital One Financial Corporation

FINANCIAL SERVICES · CREDIT SERVICES · USA

Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.

Encore Capital Group Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.

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