OneMain (NYSE:OMF – Get Free Report) and Vroom (NASDAQ:VRM – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Volatility & Risk
OneMain has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Vroom has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and price targets for OneMain and Vroom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneMain | 1 | 3 | 8 | 0 | 2.58 |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
85.8% of OneMain shares are owned by institutional investors. Comparatively, 25.8% of Vroom shares are owned by institutional investors. 0.3% of OneMain shares are owned by company insiders. Comparatively, 2.9% of Vroom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares OneMain and Vroom’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% |
| Vroom | -32.38% | -47.65% | -5.59% |
Earnings & Valuation
This table compares OneMain and Vroom”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneMain | $5.46 billion | 1.27 | $783.00 million | $6.64 | 9.08 |
| Vroom | $178.83 million | 0.30 | -$7.96 million | ($11.12) | -0.91 |
OneMain has higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than OneMain, indicating that it is currently the more affordable of the two stocks.
Summary
OneMain beats Vroom 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 Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
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