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Christian Leone’s Luxor Capital Owns 5% of Altisource Portfolio Solutions S.A. (ASPS)

Peers for Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) include Fiserv, Inc. (NASDAQ:FISV), Lender Processing Services, Inc. (NYSE:LPS), and Walter Investment Management Corp (NYSE:WAC). These companies are expected to improve their bottom lines over the next couple years as well: Walter Investment Management Corp (NYSE:WAC) is actually unprofitable on a trailing basis, with Fiserv and Lender Processing Services each featuring trailing earnings multiples of 20 or higher, but forward earnings estimates show all three companies in value territory or close to it. The highest forward P/E is Fiserv’s, at 13. However, Fiserv, Inc. (NASDAQ:FISV) saw its earnings decline by 11% last quarter compared to the first quarter of 2012 (revenue was up slightly); while Lender Processing Services, Inc. (NYSE:LPS) did grow its earnings, this was entirely due to wider net margins (and therefore probably not sustainable) as revenue fell 3%.

It’s interesting that analysts are so excited about Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), to a much greater degree than the market. However, we’d note that in its most recent quarter there wasn’t as much growth as we’d normally like to see considering where the stock is currently trading. As a result, it’s probably best for investors to wait for another quarter or two of results and only buy the stock if it shows more positive signs for growth over the next several years.

Disclosure: I own no shares of any stocks mentioned in this article.

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