Joint Stock Company Kaspi.kz (NASDAQ:KSPI) versus Credit Acceptance (NASDAQ:CACC) Critical Analysis

Credit Acceptance (NASDAQ:CACC) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

81.7% of Credit Acceptance shares are held by institutional investors. Comparatively, 32.2% of Joint Stock Company Kaspi.kz shares are held by institutional investors. 6.1% of Credit Acceptance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Credit Acceptance and Joint Stock Company Kaspi.kz”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credit Acceptance	$2.32 billion	2.40	$423.90 million	$45.48	11.70
Joint Stock Company Kaspi.kz	$4,403.33 billion	0.00	$2.04 billion	$10.98	8.64

Joint Stock Company Kaspi.kz has higher revenue and earnings than Credit Acceptance. Joint Stock Company Kaspi.kz is trading at a lower price-to-earnings ratio than Credit Acceptance, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Credit Acceptance has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Joint Stock Company Kaspi.kz has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Credit Acceptance and Joint Stock Company Kaspi.kz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credit Acceptance	0	3	1	0	2.25
Joint Stock Company Kaspi.kz	0	3	1	0	2.25

Credit Acceptance presently has a consensus target price of $565.00, indicating a potential upside of 6.14%. Joint Stock Company Kaspi.kz has a consensus target price of $107.50, indicating a potential upside of 13.27%. Given Joint Stock Company Kaspi.kz’s higher probable upside, analysts plainly believe Joint Stock Company Kaspi.kz is more favorable than Credit Acceptance.

Profitability

This table compares Credit Acceptance and Joint Stock Company Kaspi.kz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Credit Acceptance	21.54%	31.67%	5.68%
Joint Stock Company Kaspi.kz	24.00%	40.69%	9.54%

About Credit Acceptance

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers. It is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. The company serves independent and franchised automobile dealers. Credit Acceptance Corporation was incorporated in 1972 and is headquartered in Southfield, Michigan.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.