Regional Management (RM) vs. Its Rivals Financial Analysis

Regional Management (NYSE:RM) is one of 121 public companies in the “Consumer Finance” industry, but how does it compare to its peers? We will compare Regional Management to similar companies based on the strength of its earnings, profitability, valuation, institutional ownership, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current ratings for Regional Management and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regional Management	0	2	3	0	2.60
Regional Management Competitors	929	3488	5408	281	2.50

Regional Management currently has a consensus target price of $41.50, suggesting a potential upside of 14.33%. As a group, “Consumer Finance” companies have a potential upside of 23.53%. Given Regional Management’s peers higher possible upside, analysts clearly believe Regional Management has less favorable growth aspects than its peers.

Insider and Institutional Ownership

98.9% of Regional Management shares are held by institutional investors. Comparatively, 46.4% of shares of all “Consumer Finance” companies are held by institutional investors. 10.9% of Regional Management shares are held by insiders. Comparatively, 21.8% of shares of all “Consumer Finance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Regional Management has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Regional Management’s peers have a beta of 1.25, indicating that their average stock price is 25% more volatile than the S&P 500.

Profitability

This table compares Regional Management and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regional Management	6.96%	12.66%	2.26%
Regional Management Competitors	10.03%	-15.24%	2.14%

Earnings and Valuation

This table compares Regional Management and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Regional Management	$591.06 million	$44.41 million	7.35
Regional Management Competitors	$3.58 billion	$381.70 million	5.90

Regional Management’s peers have higher revenue and earnings than Regional Management. Regional Management is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Regional Management pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. Regional Management pays out 24.3% of its earnings in the form of a dividend. As a group, “Consumer Finance” companies pay a dividend yield of 6.2% and pay out 34.2% of their earnings in the form of a dividend.

Summary

Regional Management peers beat Regional Management on 8 of the 15 factors compared.

Regional Management Company Profile

Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders in the United States. It offers small and large installment loans; and retail loans to finance the purchase of furniture, appliances, and other retail products. The company also provides 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. In addition, its loans are sourced through branches, centrally-managed direct mail campaigns, and digital partners, as well as its consumer website. The company was incorporated in 1987 and is headquartered in Greer, South Carolina.