Head to Head Contrast: OneMain (NYSE:OMF) versus Vroom (NASDAQ:VRM)

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

Profitability

This table compares OneMain and Vroom’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%
Vroom	-32.38%	-47.65%	-5.59%

Institutional and Insider Ownership

85.8% of OneMain shares are held by institutional investors. Comparatively, 25.8% of Vroom shares are held by institutional investors. 0.3% of OneMain shares are held by company insiders. Comparatively, 2.9% of Vroom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

OneMain has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Vroom has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Earnings & Valuation

This table compares OneMain and Vroom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneMain	$5.46 billion	1.25	$783.00 million	$6.64	8.91
Vroom	$178.83 million	0.28	-$7.96 million	($11.12)	-0.86

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for OneMain and Vroom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	1	3	8	0	2.58
Vroom	1	0	0	0	1.00

OneMain currently has a consensus target price of $68.40, indicating a potential upside of 15.65%. Given OneMain’s stronger consensus rating and higher probable upside, equities analysts clearly believe OneMain is more favorable than Vroom.

Summary

OneMain beats Vroom on 12 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 Vroom

Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.