Head to Head Analysis: Provident Financial (FPLPY) versus OneMain (OMF)

Provident Financial (OTCMKTS: FPLPY) and OneMain (NYSE:OMF) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Valuation and Earnings

This table compares Provident Financial and OneMain’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provident Financial $1.54 billion 0.81 -$173.21 million $0.81 10.38
OneMain $3.76 billion 1.25 $183.00 million $3.54 9.75

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

Profitability

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

Net Margins Return on Equity Return on Assets
Provident Financial N/A N/A N/A
OneMain 7.37% 16.47% 2.77%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Provident Financial and OneMain, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Financial 0 0 0 0 N/A
OneMain 1 3 11 0 2.67

OneMain has a consensus target price of $35.21, indicating a potential upside of 2.01%. Given OneMain’s higher probable upside, analysts clearly believe OneMain is more favorable than Provident Financial.

Volatility and Risk

Provident Financial has a beta of -2.56, meaning that its stock price is 356% less volatile than the S&P 500. Comparatively, OneMain has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Provident Financial shares are held by institutional investors. Comparatively, 91.1% of OneMain shares are held by institutional investors. 43.9% of OneMain shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Provident Financial pays an annual dividend of $1.68 per share and has a dividend yield of 20.0%. OneMain does not pay a dividend. Provident Financial pays out 207.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

OneMain beats Provident Financial on 13 of the 15 factors compared between the two stocks.

Provident Financial Company Profile

Provident Financial plc provides personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland. The company offers credit cards; consumer credit, including unsecured and online instalment loans; and finance for cars and light commercial vehicles. It serves 2.5 million customers through its network of branches, call centers, and Websites. The company was founded in 1880 and is headquartered in Bradford, the United Kingdom.

OneMain Company Profile

OneMain Holdings, Inc., through its subsidiaries, provides consumer finance and insurance products and services. The company operates in two segments, Consumer and Insurance, and Acquisitions and Servicing. It provides secured and unsecured personal loans; credit insurance products, such as life, disability, and involuntary unemployment insurance products; non-credit insurance; and auto membership plans, as well as retail sales finance services. The company also services and holds real estate loans secured by first or second mortgages on residential real estate. As of December 31, 2017, it operated through a network of 1,600 branches in 44 states in the United States, as well as through onemainfinancial.com 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 1920 and is based in Evansville, Indiana.

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