IEG (OTCMKTS:IEGH) and Regional Management (NYSE:RM) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
This table compares IEG and Regional Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
IEG pays an annual dividend of $0.01 per share and has a dividend yield of 3.7%. Regional Management does not pay a dividend.
Earnings and Valuation
This table compares IEG and Regional Management’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Regional Management||$272.46 million||1.18||$29.96 million||$2.26||12.09|
Regional Management has higher revenue and earnings than IEG.
Insider & Institutional Ownership
0.1% of IEG shares are held by institutional investors. Comparatively, 86.5% of Regional Management shares are held by institutional investors. 39.5% of IEG shares are held by company insiders. Comparatively, 9.5% of Regional Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for IEG and Regional Management, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IEG presently has a consensus price target of $0.80, suggesting a potential upside of 196.30%. Regional Management has a consensus price target of $32.50, suggesting a potential upside of 18.96%. Given IEG’s stronger consensus rating and higher possible upside, analysts clearly believe IEG is more favorable than Regional Management.
Regional Management beats IEG on 5 of the 9 factors compared between the two stocks.
IEG Holdings Corporation, a consumer finance company, provides online unsecured consumer loans to individuals. It offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its unsecured consumer loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 19 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia. IEG Holdings Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.
About Regional Management
Regional Management Corp., a diversified consumer finance company, provides various loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders. The company offers small and large installment loans; automobile purchase loans; loans to finance the purchase of furniture, appliances, and other retail products; insurance products, including credit life, credit accident and health, credit property, vehicle single interest, and credit involuntary unemployment insurance; collateral protection insurance; and property insurance, as well as reinsurance products. Its loan products are secured and structured on a fixed rate and fixed term basis with fully amortizing equal monthly installment payments repayable at any time without penalty. The company's loans are sourced through branches, direct mail campaigns, retailers, and digital partners, as well as its consumer Website. As of February 13, 2018, it operated through a network of 342 branches located in South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico, Georgia, and Virginia. The company was founded in 1987 and is headquartered in Greer, South Carolina.
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