Had a look at PNC and compared to CCP. I like that PNC has a founder substantial shareholder and the business is experience a lot a growth it is not being priced for. For example forward PE of 8! on the FY18 guidance.
However, if you simply look at return on capital and return on equity, CCP is clearly the highest quality business in the sector. Yes, you do have to pay more of a premium for it in context of the sector, though I think CCP is likely to achieve fair value before the smaller players like Pioneer and Collections House. If you were to have one in your portfolio I think it is hard to go past the quality and track record of CCP, and simply hitch your wagon to the best and biggest in the sector. I also think CCP has clearer growth prospects in the form of the US expansion and consumer lending.
Good find though, enjoyed taking a look at PNC and you are definetly right, it is cheap!
CCP Price at posting:
$17.87 Sentiment: None Disclosure: Held
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