Regional Management Corp. (NYSE: RM) is one of 27 public companies in the “Consumer Lending” industry, but how does it contrast to its peers? We will compare Regional Management Corp. to similar companies based on the strength of its earnings, profitability, analyst recommendations, risk, dividends, valuation and institutional ownership.
Insider and Institutional Ownership
86.8% of Regional Management Corp. shares are held by institutional investors. Comparatively, 77.6% of shares of all “Consumer Lending” companies are held by institutional investors. 9.5% of Regional Management Corp. shares are held by company insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Regional Management Corp. and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Regional Management Corp.||10.37%||12.98%||3.88%|
|Regional Management Corp. Competitors||-28.26%||-17.28%||0.63%|
This is a breakdown of recent ratings and recommmendations for Regional Management Corp. and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Regional Management Corp.||0||5||1||0||2.17|
|Regional Management Corp. Competitors||192||744||1066||58||2.48|
Regional Management Corp. currently has a consensus target price of $25.83, suggesting a potential upside of 14.71%. As a group, “Consumer Lending” companies have a potential upside of 59.21%. Given Regional Management Corp.’s peers stronger consensus rating and higher possible upside, analysts plainly believe Regional Management Corp. has less favorable growth aspects than its peers.
Volatility & Risk
Regional Management Corp. has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Regional Management Corp.’s peers have a beta of 1.48, meaning that their average share price is 48% more volatile than the S&P 500.
Earnings & Valuation
This table compares Regional Management Corp. and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Regional Management Corp.||$246.92 million||$68.46 million||9.88|
|Regional Management Corp. Competitors||$564.84 million||$92.07 million||15.73|
Regional Management Corp.’s peers have higher revenue and earnings than Regional Management Corp.. Regional Management Corp. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Regional Management Corp. peers beat Regional Management Corp. on 9 of the 13 factors compared.
Regional Management Corp. Company Profile
Regional Management Corp. is a diversified consumer finance company. The Company provides an array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders. Its products include small loans, large loans, automobile loans, retail loans, and optional payment and collateral protection insurance products. It offers small loans ranging from $500 to $2,500, through its branches. It offers large installment loans with cash proceeds to the customer ranging from $2,501 to $20,000. As of December 31, 2016, automobile loans were offered in amounts up to $27,500. As of December 31, 2016, retail loans were indirect installment loans structured as retail installment sales contracts that were offered in amounts of up to $7,500. Optional Payment and Collateral Protection Insurance Products offer customers a number of optional payment and collateral protection insurance products.
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