Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Consumer Finance industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Consumer Finance Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Consumer Finance Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Consumer Finance industry for Thursday, February 19, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Consumer Finance industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Encore Capital Group, Inc.’s Value Grade

Value Grade:

Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Encore Capital Group, Inc. has a Value Score of 84, which is considered to be undervalued.

When you look at Encore Capital Group, Inc.’s price-to-sales ratio at 0.88 compared to the industry median at 1.00, this company has a lower price relative to revenue compared to its peers. This could make Encore Capital Group, Inc.’s stock more attractive for value investors.

Now, let’s assess Encore Capital Group, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.9, when compared to the industry median of 5.9, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Encore Capital Group, Inc.’s shareholder yield is higher than its industry median ratio of 2.35%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Encore Capital Group, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.34. This could make Encore Capital Group, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Encore Capital Group, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Encore Capital Group, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 4.60. This could make Encore Capital Group, Inc. less attractive because the higher P/FCF ratio indicates that Encore Capital Group, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

FinVolution Group’s Value Grade

Value Grade:

FinVolution Group, an investment holding company, operates in the online consumer finance industry in the People’s Republic of China, Indonesia, and internationally. It operates an online consumer finance platform through its ppdai.com and PPDai mobile application; KOO Virtual Credit; AdaKami, an online loan platform; and JuanHand for lending and other personalized financial services. The company was formerly known as PPDAI Group Inc. and changed its name to FinVolution Group in November 2019. FinVolution Group was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

FinVolution Group has a Value Score of 100, which is considered to be undervalued.

FinVolution Group’s price-earnings ratio is 3.9 compared to the industry median at 9.1. This means that it has a lower price relative to its earnings compared to its peers. This makes FinVolution Group more attractive for value investors.

FinVolution Group’s price-to-book ratio is higher than its peers. This could make FinVolution Group less attractive for value investors when compared to the industry median at 1.34.

You can read more about FinVolution Group’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

NerdWallet, Inc.’s Value Grade

Value Grade:

NerdWallet, Inc. operates a digital platform that provides financial guidance to consumers and small and mid-sized businesses (SMB) in the United States, the United Kingdom, Australia, and Canada. The company’s NerdWallet app delivers various financial products, such as credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. It also provides guidance to consumers through educational content, tools and calculators, and product marketplaces. NerdWallet, Inc. was founded in 2009 and is based in San Mateo, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

NerdWallet, Inc. has a Value Score of 80, which is considered to be undervalued.

NerdWallet, Inc.’s price-earnings ratio is 10.9 compared to the industry median at 9.1. This means that it has a higher price relative to its earnings compared to its peers. This makes NerdWallet, Inc. less attractive for value investors.

NerdWallet, Inc.’s price-to-book ratio is lower than its peers. This could make NerdWallet, Inc. more attractive for value investors when compared to the industry median at 1.34.

You can read more about NerdWallet, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

OneMain Holdings, Inc.’s Value Grade

Value Grade:

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. The company provides origination, underwriting, and servicing of consumer loans, consisting of personal loans and auto finance. It also offers secured auto financing; credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. The company provides personal loans through its branch network, central operations, digital affiliates, and its website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was incorporated in 2013 and is based in Evansville, Indiana.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

OneMain Holdings, Inc. has a Value Score of 91, which is considered to be undervalued.

OneMain Holdings, Inc.’s price-earnings ratio is 8.7 compared to the industry median at 9.1. This means that it has a lower price relative to its earnings compared to its peers. This makes OneMain Holdings, Inc. more attractive for value investors.

OneMain Holdings, Inc.’s price-to-book ratio is lower than its peers. This could make OneMain Holdings, Inc. more attractive for value investors when compared to the industry median at 1.34.

You can read more about OneMain Holdings, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Oportun Financial Corporation’s Value Grade

Value Grade:

Oportun Financial Corporation provides financial services in the United States. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. Oportun Financial Corporation was founded in 2005 and is headquartered in San Carlos, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Oportun Financial Corporation has a Value Score of 93, which is considered to be undervalued.

Oportun Financial Corporation’s price-earnings ratio is 7.9 compared to the industry median at 9.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Oportun Financial Corporation more attractive for value investors.

Oportun Financial Corporation’s price-to-book ratio is higher than its peers. This could make Oportun Financial Corporation less attractive for value investors when compared to the industry median at 1.34.

You can read more about Oportun Financial Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PRA Group, Inc.’s Value Grade

Value Grade:

PRA Group, Inc., a financial services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide. The company purchases accounts that are primarily unpaid obligations of individuals owed to credit originators. It also purchases and collects nonperforming loans, which are sold by credit originators when they choose not to pursue, or have been unsuccessful in, collecting the full balance owed. In addition, the company is involved in purchasing and collecting on nonperforming loans where the customer is involved in a bankruptcy or similar proceeding; and purchase and provide fee-based services for class action claims recoveries. Its nonperforming loans, includes general purpose and private label credit cards, consumer loans, auto loans, overdrafts, and small business loans. The company was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014. PRA Group, Inc. was founded in 1996 and is headquartered in Norfolk, Virginia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PRA Group, Inc. has a Value Score of 89, which is considered to be undervalued.

PRA Group, Inc.’s price-to-book ratio is higher than its peers. This could make PRA Group, Inc. less attractive for value investors when compared to the industry median at 1.34.

You can read more about PRA Group, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

World Acceptance Corporation’s Value Grade

Value Grade:

World Acceptance Corporation engages in consumer finance business in the United States. The company offers short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It also provides income tax return preparation and electronic filing services; and automobile club memberships. The company serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

World Acceptance Corporation has a Value Score of 84, which is considered to be undervalued.

World Acceptance Corporation’s price-earnings ratio is 16.2 compared to the industry median at 9.1. This means that it has a higher price relative to its earnings compared to its peers. This makes World Acceptance Corporation less attractive for value investors.

World Acceptance Corporation’s price-to-book ratio is lower than its peers. This could make World Acceptance Corporation more attractive for value investors when compared to the industry median at 1.34.

You can read more about World Acceptance Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Consumer Finance Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Consumer Finance stocks as well as other industrys.

Choosing Which of the 7 Best Consumer Finance Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Encore Capital Group, Inc. stock has a Value Grade of A.
• FinVolution Group stock has a Value Grade of A.
• NerdWallet, Inc. stock has a Value Grade of B.
• OneMain Holdings, Inc. stock has a Value Grade of A.
• Oportun Financial Corporation stock has a Value Grade of A.
• PRA Group, Inc. stock has a Value Grade of A.
• World Acceptance Corporation stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Consumer Finance industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Consumer Finance Stocks

Want to learn more about Consumer Finance stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Consumer Finance Stocks for Thursday, February 19
• Is Capital One Financial Corporation (COF) Overvalued?
• Is Capital One Financial Corporation (COF) Overvalued?
• Why PROG Holdings, Inc.’s (PRG) Stock Is Up 5.82%

AAII Disclaimer

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