Head to Head Contrast: OneMain (OMF) vs. Its Peers

OneMain (NYSE:OMF) is one of 120 publicly-traded companies in the “Consumer Finance” industry, but how does it weigh in compared to its competitors? We will compare OneMain to similar businesses based on the strength of its risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Risk & Volatility

OneMain has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, OneMain’s competitors have a beta of 1.26, indicating that their average share price is 26% more volatile than the S&P 500.

Institutional & Insider Ownership

85.8% of OneMain shares are held by institutional investors. Comparatively, 45.7% of shares of all “Consumer Finance” companies are held by institutional investors. 0.3% of OneMain shares are held by company insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

OneMain pays an annual dividend of $4.20 per share and has a dividend yield of 7.7%. OneMain pays out 63.9% 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 34.3% of their earnings in the form of a dividend. OneMain has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for OneMain and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	1	3	9	0	2.62
OneMain Competitors	896	3366	5297	276	2.50

OneMain currently has a consensus price target of $66.82, indicating a potential upside of 22.76%. As a group, “Consumer Finance” companies have a potential upside of 22.40%. Given OneMain’s stronger consensus rating and higher possible upside, equities analysts clearly believe OneMain is more favorable than its competitors.

Earnings & Valuation

This table compares OneMain and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
OneMain	$5.46 billion	$783.00 million	8.28
OneMain Competitors	$3.62 billion	$385.17 million	4.49

OneMain has higher revenue and earnings than its competitors. OneMain is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares OneMain and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneMain	13.43%	21.90%	2.68%
OneMain Competitors	10.42%	-15.79%	2.02%

Summary

OneMain beats its competitors on 12 of the 15 factors compared.

About OneMain

OneMain Holdings, Inc. is a consumer finance company that provides personal loans to customers, including borrowers who may have limited access to traditional credit. Its offerings include secured and unsecured installment loans, which customers can apply for through its branches or digital channels. The company also offers credit-related insurance and other products designed to complement its lending services. OneMain serves customers across the United States through a nationwide branch network and online services.