WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Capital One Financial Corporation generates 1861% more annual revenue ($36.31B vs $1.85B). ECPG leads profitability with a 16.0% profit margin vs 8.9%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 90/100 (A).

COF

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 5.7Quality: 4.0
Piotroski: 2/9Altman Z: -0.36

ECPG

Exceptional Buy

90

out of 100

Grade: A

Growth: 8.0Profit: 9.0Value: 8.3Quality: 4.0
Piotroski: 6/9Altman Z: 1.18

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COF6 strengths · Avg: 9.2/10
PEG RatioValuation
0.2010/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
46.3%10/10

Revenue surging 46.3% year-over-year

Market CapQuality
$114.40B9/10

Large-cap with strong market position

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

ECPG6 strengths · Avg: 9.5/10
PEG RatioValuation
0.1710/10

Growing faster than its price suggests

P/E RatioValuation
6.2x10/10

Attractively priced relative to earnings

Operating MarginProfitability
38.7%10/10

Strong operational efficiency at 38.7%

EPS GrowthGrowth
100.0%10/10

Earnings expanding 100.0% YoY

Return on EquityProfitability
28.6%9/10

Every $100 of equity generates 29 in profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

COF4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
56.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-3.2%2/10

Earnings declined 3.2%

ECPG3 concerns · Avg: 2.0/10
Market CapQuality
$1.71B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
1.182/10

Distress zone — elevated risk

Debt/EquityHealth
3.901/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : COF

The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 46.3% demonstrates continued momentum. PEG of 0.20 suggests the stock is reasonably priced for its growth.

Bull Case : ECPG

The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 16.0% and operating margin at 38.7%. Revenue growth of 21.0% demonstrates continued momentum.

Bear Case : COF

The primary concerns for COF are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 56.6x leaves little room for execution misses.

Bear Case : ECPG

The primary concerns for ECPG are Market Cap, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.90 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

ECPG carries more volatility with a beta of 1.33 — expect wider price swings.

COF is growing revenue faster at 46.3% — sustainability is the question.

COF generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

ECPG scores higher overall (90/100 vs 65/100), backed by strong 16.0% margins and 21.0% revenue growth. Both earn "Exceptional Buy" and "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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