Encore Capital Group Inc (ECPG)vsVisa Inc. Class A (V)
ECPG
Encore Capital Group Inc
$70.85
-0.18%
FINANCIAL SERVICES · Cap: $1.58B
V
Visa Inc. Class A
$304.91
+0.38%
FINANCIAL SERVICES · Cap: $585.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Visa Inc. Class A generates 2240% more annual revenue ($41.39B vs $1.77B). V leads profitability with a 50.2% profit margin vs 14.5%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 90/100 (A).
ECPG
Exceptional Buy90
out of 100
Grade: A
V
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+88.7%
Fair Value
$509.65
Current Price
$70.85
$438.80 discount
Margin of Safety
+17.4%
Fair Value
$369.26
Current Price
$304.91
$64.35 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 81.8%
Revenue surging 78.3% year-over-year
Earnings expanding 151.6% YoY
Every $100 of equity generates 29 in profit
Mega-cap, among the largest globally
Every $100 of equity generates 54 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 68.3%
Generating 6.4B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
Moderate valuation
Trading at 15.2x book value
Grey zone — moderate risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ECPG
The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Revenue growth of 78.3% demonstrates continued momentum. PEG of 0.17 suggests the stock is reasonably priced for its growth.
Bull Case : V
The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : ECPG
The primary concerns for ECPG are Market Cap.
Bear Case : V
The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
ECPG profiles as a growth stock while V is a mature play — different risk/reward profiles.
ECPG carries more volatility with a beta of 1.31 — expect wider price swings.
ECPG is growing revenue faster at 78.3% — sustainability is the question.
V generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
ECPG scores higher overall (90/100 vs 68/100) and 78.3% revenue growth. V offers better value entry with a 17.4% margin of safety. 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.
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.
Visa Inc. Class A
FINANCIAL SERVICES · CREDIT SERVICES · USA
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.
Visit Website →Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?