Provident Financial (OTCMKTS: FPLPY) and OneMain (NYSE:OMF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Valuation and Earnings
This table compares Provident Financial and OneMain’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Provident Financial||$1.54 billion||0.81||-$173.21 million||$0.81||10.38|
|OneMain||$3.76 billion||1.25||$183.00 million||$3.54||9.75|
OneMain has higher revenue and earnings than Provident Financial. OneMain is trading at a lower price-to-earnings ratio than Provident Financial, indicating that it is currently the more affordable of the two stocks.
This table compares Provident Financial and OneMain’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Provident Financial and OneMain, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OneMain has a consensus target price of $35.21, suggesting a potential upside of 2.01%. Given OneMain’s higher probable upside, analysts plainly believe OneMain is more favorable than Provident Financial.
Volatility and Risk
Provident Financial has a beta of -2.56, indicating that its stock price is 356% less volatile than the S&P 500. Comparatively, OneMain has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500.
Insider & Institutional Ownership
0.1% of Provident Financial shares are held by institutional investors. Comparatively, 91.1% of OneMain shares are held by institutional investors. 43.9% of OneMain shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Provident Financial pays an annual dividend of $1.68 per share and has a dividend yield of 20.0%. OneMain does not pay a dividend. Provident Financial pays out 207.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
OneMain beats Provident Financial on 13 of the 15 factors compared between the two stocks.
Provident Financial Company Profile
Provident Financial plc provides personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland. The company offers credit cards; consumer credit, including unsecured and online instalment loans; and finance for cars and light commercial vehicles. It serves 2.5 million customers through its network of branches, call centers, and Websites. The company was founded in 1880 and is headquartered in Bradford, the United Kingdom.
OneMain Company Profile
OneMain Holdings, Inc., through its subsidiaries, provides consumer finance and insurance products and services. The company operates in two segments, Consumer and Insurance, and Acquisitions and Servicing. It provides secured and unsecured personal loans; credit insurance products, such as life, disability, and involuntary unemployment insurance products; non-credit insurance; and auto membership plans, as well as retail sales finance services. The company also services and holds real estate loans secured by first or second mortgages on residential real estate. As of December 31, 2017, it operated through a network of 1,600 branches in 44 states in the United States, as well as through onemainfinancial.com Website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1920 and is based in Evansville, Indiana.
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