Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 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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3 Undervalued Consumer Finance Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Consumer Finance industry for Monday, April 13, 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 debt servicing, such as 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 92, which is considered to be undervalued.

When you look at Encore Capital Group, Inc.’s price-to-sales ratio at 0.99 compared to the industry median at 1.10, 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.

Encore Capital Group, Inc.’s price-earnings ratio is 6.90 compared to the industry median at 8.90. This means it has a lower share price relative to earnings compared to its peers. This could make Encore Capital Group, Inc. more attractive for value investors.

Now, let’s assess Encore Capital Group, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 5.8, when compared to the industry median of 6.4, the company may be considered undervalued 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 1.80%. 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 1.30. 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 2.90. 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.

Jefferson Capital, Inc.’s Value Grade

Value Grade:

Jefferson Capital, Inc. provides debt recovery solutions and other related services in the United States, the United Kingdom, Canada, and Latin America. It primarily purchases portfolios of previously charged-off consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. The company offers consumer receivables, including credit card, secured and unsecured automotive, utilities, telecom, and other receivables. It also provides debt servicing and other portfolio management services to credit originators for nonperforming loans. Jefferson Capital, Inc. was founded in 2002 and is headquartered in Minneapolis, Minnesota.

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.

Jefferson Capital, Inc. has a Value Score of 96, which is considered to be undervalued.

Jefferson Capital, Inc.’s price-earnings ratio is 3.5 compared to the industry median at 8.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Jefferson Capital, Inc. more attractive for value investors.

Jefferson Capital, Inc.’s price-to-book ratio is lower than its peers. This could make Jefferson Capital, Inc. more attractive for value investors when compared to the industry median at 1.30.

You can read more about Jefferson Capital, 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.

Medallion Financial Corp.’s Value Grade

Value Grade:

Medallion Financial Corp., together with its subsidiaries, operates as a specialty finance company in the United States. It operates in four segments: Recreation Lending, Home Improvement Lending, Commercial Loans, Taxi Medallion Lending. The company offers loans that finance consumer purchases of recreational vehicles, boats, collector cars, and other consumer recreational equipment; consumer financing for window, siding, and roof replacement, swimming pool installations, and other home improvement projects; senior and subordinated loans for the purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and taxi medallion loans to individuals and small to mid-size businesses. It also provides debt, mezzanine, and equity investment capital to companies in various commercial industries; and raises deposits and conducts other banking activities. The company was incorporated in 1995 and is headquartered in New York City, New York.

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.

Medallion Financial Corp. has a Value Score of 96, which is considered to be undervalued.

Medallion Financial Corp.’s price-earnings ratio is 5.0 compared to the industry median at 8.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Medallion Financial Corp. more attractive for value investors.

Medallion Financial Corp.’s price-to-book ratio is higher than its peers. This could make Medallion Financial Corp. less attractive for value investors when compared to the industry median at 1.30.

You can read more about Medallion Financial Corp.’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 3 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.
• Jefferson Capital, Inc. stock has a Value Grade of A.
• Medallion Financial Corp. stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 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.

• 6 Undervalued Consumer Finance Stocks for Monday, April 13
• Is Capital One Financial Corporation (COF) Overvalued?
• 3 Undervalued Consumer Finance Stocks for Friday, April 10
• Is Capital One Financial Corporation (COF) Overvalued?

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.