Federal Agricultural Mortgage Corporation (AGM) vs Encore Capital Group Inc (ECPG)

Federal Agricultural Mortgage Corporation and Encore Capital Group Inc are both Credit Services companies. Federal Agricultural Mortgage Corporation is the larger, with a market value of $2.3B against $2.1B — 1.1× the size. Encore Capital Group Inc trades at the lower P/E: 7.2× against 11.6×. Encore Capital Group Inc grew revenue faster over the last twelve months: 29.6% against 7.27%. Encore Capital Group Inc has the higher net margin (15.9% vs 11.6%) and the lower return on invested capital (4.83% vs 5.67%). Across the 19 metrics below, Encore Capital Group Inc leads on 10 and Federal Agricultural Mortgage Corporation on 9.

Valuation

Metric AGM ECPG Credit Services median
P/E 11.63 7.24 9.64
P/S 1.35 1.12 0.87
P/B 1.86 1.97 1.16
Price to free cash flow 7.43 13.03 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales 2.07 3.22 2.32
Earnings yield 8.60% 13.81% 6.72%
Free cash flow yield 13.45% 7.67% 12.33%

Profitability

Metric AGM ECPG Credit Services median
Gross margin 25.89% 100.00% 77.13%
Operating margin 0.00% 0.00% 0.34%
Net margin 11.62% 15.86% 9.25%
Free cash flow margin 18.14% 8.56% 13.03%
Return on equity 16.79% 30.54% 8.49%
Return on assets 0.55% 5.61% 2.29%
Return on invested capital 5.67% 4.83% 4.09%

Growth

Metric AGM ECPG Credit Services median
Revenue growth (TTM) 7.27% 29.55% 4.62%
EPS growth (last fiscal year) 1.09% 287.14% —
Revenue growth, 5-year CAGR 25.34% 3.33% 9.13%
Net income growth, 5-year CAGR 13.97% 3.93% 0.00%

Health

Metric AGM ECPG Credit Services median
Debt to equity 1.23 3.87 0.68
Current ratio 0.56 0.96 1.55
Net debt to EBITDA 0.00 0.00 0.13

Dividend

Metric AGM ECPG Credit Services median
Dividend yield 2.42% — 3.34%
Payout ratio 0.29 0.00 0.00

Size

Metric AGM ECPG Credit Services median
Market cap 2.31b 2.07b 872.19m

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