Zacks Investment Ideas Feature Highlights: Pegasystems, Inter Parfums, Rollins and Credit Acceptance

CHICAGO, Feb. 9, 2011 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: Pegasystems Inc. (Nasdaq: PEGA), Inter Parfums Inc. (Nasdaq: IPAR), Rollins Inc. (NYSE: ROL) and Credit Acceptance Corp. (Nasdaq: CACC).

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4 Stocks with Large Insider Ownership

This is a simple concept that we've all likely experienced before. Think about the kind of service you typically get at a big box retailer compared to the service of a small business owner. The hourly worker doesn't care whether or not you come back or if you refer friends and family to their store. The business owner does. Why? Because they have a long-term interest.

Do the people on the inside have a vested interest in the long-term value of the company? It's an important item to consider when evaluating a stock to buy.

Here are 4 stocks with large insider ownership:

Pegasystems Inc. (Nasdaq: PEGA)

Pegasystems provides Customer Relationship Management software that allows companies to manage a broad array of customer interactions. The company was founded in 1983 by Alan Trefler, who is still the company's chairman and CEO. Insiders own more than 57% of the company, most of which is held by Trefler.

Despite two recessions over the last 10 years, Pegasystems has managed to grow its sales at a compound annual growth rate of 15.5%. It is a Zacks #2 Rank (Buy) stock.

Inter Parfums Inc. (Nasdaq: IPAR)

Inter Parfums manufactures, markets and distributes perfumes and cosmetics. Together, co-founders Jean Madar and Philippe Benacin own nearly 50% of the company.

With the exception of 2009, the company has grown its sales at double-digits rates every year since 2001 at an average rate of 17.0%. It is a Zacks #2 Rank (Buy) stock.

Rollins Inc. (NYSE: ROL)

Rollins is best known for its flagship brand Orkin. The company provides pest and termite control services around the world. Although much has been made about bed bugs recently, it actually accounts for only a tiny sliver of overall revenue. Nonetheless, the bug business has been good with EPS rising at an average annual rate of 21% since 2001.

The company was founded in 1948 by John Rollins and his brother, O. Wayne Rollins. The Rollins family is still actively involved in the business today. Randall Rollins is Chairman of the Board, Gary Rollins is President and CEO, and Glen Rollins is a Director. Altogether, insiders own nearly 57% of the shares outstanding.

It is a Zacks #2 Rank (Buy) stock.

Credit Acceptance Corp. (Nasdaq: CACC)

Founded by Donald Foss in 1972, the company provides vehicle loans to consumers regardless of credit history. Despite the financial crisis, business has been booming with net income more than tripling since 2007. The stock trades at just 9.6x forward earnings despite a near 400% rise in share price since November 2008.

Mr. Foss is still the company's chairman, and he owns 47% of shares outstanding with another 12% held in an annuity trust in his name. Altogether, insiders own about 80% of the company.

It is a Zacks #2 Rank (Buy) stock.

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