Financial Review: goeasy (OTCMKTS:EHMEF) and OneMain (NYSE:OMF)

OneMain (NYSE:OMF) and goeasy (OTCMKTS:EHMEF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares OneMain and goeasy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneMain	13.92%	23.49%	2.92%
goeasy	N/A	N/A	N/A

Dividends

OneMain pays an annual dividend of $4.20 per share and has a dividend yield of 6.6%. goeasy pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. OneMain pays out 63.3% of its earnings in the form of a dividend. goeasy pays out 20.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OneMain has raised its dividend for 5 consecutive years. OneMain is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for OneMain and goeasy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	1	3	8	0	2.58
goeasy	1	3	0	0	1.75

OneMain currently has a consensus target price of $68.40, indicating a potential upside of 8.15%. Given OneMain’s stronger consensus rating and higher probable upside, research analysts plainly believe OneMain is more favorable than goeasy.

Earnings & Valuation

This table compares OneMain and goeasy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneMain	$5.46 billion	1.33	$783.00 million	$6.64	9.53
goeasy	N/A	N/A	N/A	$1.24	24.81

OneMain has higher revenue and earnings than goeasy. OneMain is trading at a lower price-to-earnings ratio than goeasy, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

85.8% of OneMain shares are held by institutional investors. Comparatively, 23.7% of goeasy shares are held by institutional investors. 0.3% of OneMain shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

OneMain beats goeasy on 12 of the 14 factors compared between the two stocks.

About OneMain

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It sells its products through its 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 1912 and is based in Evansville, Indiana.

About goeasy

goeasy Ltd. provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. The company operates through two segments, Easyfinancial and Easyhome. It offers unsecured and secured installment loans; home equity secured instalment loans and automotive vehicle financing; and loans to finance the purchase of retail goods, powersports and recreational vehicles, home improvement projects, and healthcare related products and services. The companyleases household furniture, appliances, electronics, and unsecured lending products to retail consumers. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was incorporated in 1990 and is headquartered in Mississauga, Canada.