Altisource Portfolio Solutions (NASDAQ: ASPS) and SouFun Holdings Limited (NYSE:SFUN) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Profitability
This table compares Altisource Portfolio Solutions and SouFun Holdings Limited’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Altisource Portfolio Solutions | 0.60% | 82.95% | 8.76% |
| SouFun Holdings Limited | -8.27% | -14.64% | -4.45% |
Risk and Volatility
Altisource Portfolio Solutions has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, SouFun Holdings Limited has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
Valuation and Earnings
This table compares Altisource Portfolio Solutions and SouFun Holdings Limited’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Altisource Portfolio Solutions | $982.54 million | 0.36 | $148.76 million | $0.28 | 70.68 |
| SouFun Holdings Limited | $821.57 million | 1.93 | -$19.98 million | ($0.15) | -23.93 |
Altisource Portfolio Solutions has higher revenue and earnings than SouFun Holdings Limited. SouFun Holdings Limited is trading at a lower price-to-earnings ratio than Altisource Portfolio Solutions, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
55.6% of Altisource Portfolio Solutions shares are owned by institutional investors. Comparatively, 50.2% of SouFun Holdings Limited shares are owned by institutional investors. 6.0% of Altisource Portfolio Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Altisource Portfolio Solutions and SouFun Holdings Limited, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Altisource Portfolio Solutions | 0 | 2 | 0 | 0 | 2.00 |
| SouFun Holdings Limited | 2 | 3 | 2 | 0 | 2.00 |
Altisource Portfolio Solutions currently has a consensus price target of $19.00, indicating a potential downside of 3.99%. SouFun Holdings Limited has a consensus price target of $3.63, indicating a potential upside of 1.00%. Given SouFun Holdings Limited’s higher possible upside, analysts clearly believe SouFun Holdings Limited is more favorable than Altisource Portfolio Solutions.
Summary
Altisource Portfolio Solutions beats SouFun Holdings Limited on 8 of the 12 factors compared between the two stocks.
Altisource Portfolio Solutions Company Profile
Altisource Portfolio Solutions S.A. is a marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. The Company’s business processes, vendor and electronic payment management software and behavioral science-based analytics manage outcomes for marketplace participants. It operates through three segments: Mortgage Services, Financial Services and Technology Services. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies. The Financial Services segment provides collection services to debt originators and servicers and customer relationship management services. The Technology Services segment provides software and data analytics solutions that support management of mortgage and real estate activities and marketplace transactions across mortgage and real estate lifecycles and information technology infrastructure management services.
SouFun Holdings Limited Company Profile
Fang Holdings Limited, formerly SouFun Holdings Limited, operates as a real estate Internet portal in China. The Company’s Websites and mobile applications support active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors in China. The Company, through its Internet platform, is engaged in the development of transaction and financing platforms by offering direct sales services for new homes, online real estate brokerage services and financial services. The Company’s service offerings include marketing services, E-commerce services, listing services, Financial services and other value-added services. The Company provides secured loans in the form of entrusted loans and mortgage loans and unsecured loans primarily to home buyers, real estate developers and other borrowers that meet its credit assessment requirements.
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