Financial Analysis: Rover Group (OTCMKTS:NEBCU) versus Regis (NASDAQ:RGS)

Rover Group (OTCMKTS:NEBCU) and Regis (NASDAQ:RGS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Earnings & Valuation

This table compares Rover Group and Regis”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rover Group	N/A	N/A	N/A	N/A	N/A
Regis	$210.13 million	0.34	$123.54 million	$43.49	0.65

Regis has higher revenue and earnings than Rover Group.

Profitability

This table compares Rover Group and Regis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rover Group	N/A	N/A	N/A
Regis	52.01%	3.60%	1.16%

Analyst Ratings

This is a summary of current ratings for Rover Group and Regis, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rover Group	0	0	0	0	0.00
Regis	0	1	1	0	2.50

Regis has a consensus price target of $42.00, indicating a potential upside of 48.04%. Given Regis’ stronger consensus rating and higher possible upside, analysts plainly believe Regis is more favorable than Rover Group.

Insider and Institutional Ownership

31.5% of Regis shares are owned by institutional investors. 4.8% of Regis shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Regis beats Rover Group on 9 of the 9 factors compared between the two stocks.

About Rover Group

Nebula Caravel Acquisition Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or related business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in San Francisco, California.

About Regis

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.