Regis (RGS) vs. The Competition Head to Head Review

Regis (NASDAQ:RGS) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it compare to its rivals? We will compare Regis to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, dividends, valuation, risk and earnings.

Profitability

This table compares Regis and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regis	3.09%	4.10%	1.36%
Regis Competitors	-3.20%	-28.46%	2.44%

Volatility & Risk

Regis has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Regis’ rivals have a beta of 0.47, meaning that their average stock price is 53% less volatile than the S&P 500.

Insider & Institutional Ownership

31.5% of Regis shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 8.0% of Regis shares are owned by company insiders. Comparatively, 19.9% of shares of all “Diversified Consumer Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Regis and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Regis	$224.49 million	$6.94 million	12.05
Regis Competitors	$3.24 billion	$219.82 million	11.99

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Regis and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regis	0	1	1	0	2.50
Regis Competitors	1428	3421	5269	194	2.41

Regis currently has a consensus price target of $42.00, indicating a potential upside of 44.06%. As a group, “Diversified Consumer Services” companies have a potential upside of 64.49%. Given Regis’ rivals higher possible upside, analysts clearly believe Regis has less favorable growth aspects than its rivals.

Summary

Regis rivals beat Regis on 8 of the 13 factors compared.

Regis Company Profile

Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, the United Kingdom, Canada, and Puerto Rico. The company operates in two segments, Franchise Salons and Company-owned Salons. Its salons provide haircutting and styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products. The company also offers OpenSalon Pro, a back-office salon management system; and Opensalon mobile application. Regis Corporation operates its salons primarily under the SmartStyle, Supercuts, Cost Cutters, Roosters, and First Choice Haircutters names. As of June 30, 2021, the company operated 5,917 salons, such as 5,563 franchised salons, 276 company-owned salons, and 78 non-controlling ownership salons. It also operates accredited cosmetology schools. The company was founded in 1922 and is headquartered in Minneapolis, Minnesota.