Analyzing OneMain (NYSE:OMF) and Dave (NASDAQ:DAVE)

OneMain (NYSE:OMF) and Dave (NASDAQ:DAVE) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

OneMain has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Dave has a beta of 3.83, meaning that its share price is 283% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for OneMain and Dave, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	1	3	8	0	2.58
Dave	0	3	11	0	2.79

OneMain presently has a consensus price target of $68.40, indicating a potential upside of 4.17%. Dave has a consensus price target of $412.90, indicating a potential upside of 23.41%. Given Dave’s stronger consensus rating and higher probable upside, analysts clearly believe Dave is more favorable than OneMain.

Valuation and Earnings

This table compares OneMain and Dave”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneMain	$5.46 billion	1.38	$783.00 million	$6.64	9.89
Dave	$554.20 million	7.70	$195.87 million	$15.42	21.70

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

Profitability

This table compares OneMain and Dave’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%
Dave	34.58%	77.46%	40.44%

Insider and Institutional Ownership

85.8% of OneMain shares are held by institutional investors. Comparatively, 18.0% of Dave shares are held by institutional investors. 0.3% of OneMain shares are held by insiders. Comparatively, 23.6% of Dave shares are held 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

Dave beats OneMain on 11 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 Dave

Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.