OneMain (OMF) & Its Peers Financial Review

OneMain (NYSE:OMF) is one of 120 publicly-traded companies in the “Consumer Finance” industry, but how does it weigh in compared to its peers? We will compare OneMain to related businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for OneMain and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	1	3	9	0	2.62
OneMain Competitors	891	3352	5292	274	2.50

OneMain presently has a consensus target price of $66.82, indicating a potential upside of 19.07%. As a group, “Consumer Finance” companies have a potential upside of 21.17%. Given OneMain’s peers higher possible upside, analysts plainly believe OneMain has less favorable growth aspects than its peers.

Insider and Institutional Ownership

85.8% of OneMain shares are held by institutional investors. Comparatively, 45.8% of shares of all “Consumer Finance” companies are held by institutional investors. 0.3% of OneMain shares are held by insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

OneMain has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, OneMain’s peers have a beta of 1.26, indicating that their average share price is 26% more volatile than the S&P 500.

Profitability

This table compares OneMain and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneMain	13.43%	21.90%	2.68%
OneMain Competitors	10.31%	-15.77%	1.99%

Dividends

OneMain pays an annual dividend of $4.20 per share and has a dividend yield of 7.5%. OneMain pays out 63.9% of its earnings in the form of a dividend. As a group, “Consumer Finance” companies pay a dividend yield of 6.2% and pay out 34.3% of their earnings in the form of a dividend. OneMain has increased its dividend for 5 consecutive years.

Valuation and Earnings

This table compares OneMain and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
OneMain	$5.21 billion	$783.00 million	8.54
OneMain Competitors	$3.64 billion	$385.17 million	6.18

OneMain has higher revenue and earnings than its peers. OneMain is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

OneMain beats its peers on 11 of the 15 factors compared.

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.