Reviewing Consumer Portfolio Services (NASDAQ:CPSS) and TeraWulf (NASDAQ:WULF)

TeraWulf (NASDAQ:WULF) and Consumer Portfolio Services (NASDAQ:CPSS) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for TeraWulf and Consumer Portfolio Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeraWulf	0	0	8	1	3.11
Consumer Portfolio Services	0	0	0	0	N/A

TeraWulf currently has a consensus target price of $5.35, suggesting a potential downside of 4.12%. Given TeraWulf’s higher possible upside, equities analysts plainly believe TeraWulf is more favorable than Consumer Portfolio Services.

Insider and Institutional Ownership

62.5% of TeraWulf shares are held by institutional investors. Comparatively, 47.6% of Consumer Portfolio Services shares are held by institutional investors. 24.9% of TeraWulf shares are held by company insiders. Comparatively, 67.7% of Consumer Portfolio Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares TeraWulf and Consumer Portfolio Services’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$69.23 million	26.85	-$73.42 million	N/A	N/A
Consumer Portfolio Services	$352.01 million	0.57	$45.34 million	$1.44	6.58

Consumer Portfolio Services has higher revenue and earnings than TeraWulf.

Risk & Volatility

TeraWulf has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500. Comparatively, Consumer Portfolio Services has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500.

Profitability

This table compares TeraWulf and Consumer Portfolio Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeraWulf	-56.70%	-30.00%	-16.17%
Consumer Portfolio Services	10.01%	13.44%	1.24%

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.

About Consumer Portfolio Services

Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It is involved in the purchase and service of retail automobile contracts originated by franchised automobile dealers and select independent dealers in the sale of new and used automobiles, light trucks, and passenger vans. The company, through its automobile contract purchases, offers indirect financing to the customers of dealers with limited credit histories or past credit problems. It also serves as an alternative source of financing for dealers, facilitating sales to customers who are not able to obtain financing from commercial banks, credit unions, and the captive finance companies. In addition, the company acquires installment purchase contracts in merger and acquisition transactions; purchases immaterial amounts of vehicle purchase money loans from non-affiliated lenders. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was incorporated in 1991 and is based in Las Vegas, Nevada.