Analyzing Joint Stock Company Kaspi.kz (NASDAQ:KSPI) and Regional Management (NYSE:RM)

Regional Management (NYSE:RM) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Profitability

This table compares Regional Management and Joint Stock Company Kaspi.kz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regional Management	6.96%	12.61%	2.23%
Joint Stock Company Kaspi.kz	24.00%	40.69%	9.54%

Valuation and Earnings

This table compares Regional Management and Joint Stock Company Kaspi.kz”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regional Management	$645.60 million	0.48	$44.41 million	$4.94	7.00
Joint Stock Company Kaspi.kz	$7.70 billion	2.19	$2.04 billion	$10.98	8.07

Joint Stock Company Kaspi.kz has higher revenue and earnings than Regional Management. Regional Management is trading at a lower price-to-earnings ratio than Joint Stock Company Kaspi.kz, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

98.9% of Regional Management shares are owned by institutional investors. Comparatively, 32.2% of Joint Stock Company Kaspi.kz shares are owned by institutional investors. 10.9% of Regional Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Regional Management and Joint Stock Company Kaspi.kz, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regional Management	0	2	3	0	2.60
Joint Stock Company Kaspi.kz	0	4	1	0	2.20

Regional Management presently has a consensus price target of $41.50, suggesting a potential upside of 19.96%. Joint Stock Company Kaspi.kz has a consensus price target of $105.33, suggesting a potential upside of 18.83%. Given Regional Management’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Regional Management is more favorable than Joint Stock Company Kaspi.kz.

Volatility and Risk

Regional Management has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Joint Stock Company Kaspi.kz has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Dividends

Regional Management pays an annual dividend of $1.20 per share and has a dividend yield of 3.5%. Joint Stock Company Kaspi.kz pays an annual dividend of $8.58 per share and has a dividend yield of 9.7%. Regional Management pays out 24.3% of its earnings in the form of a dividend. Joint Stock Company Kaspi.kz pays out 78.1% 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

Joint Stock Company Kaspi.kz beats Regional Management on 9 of the 16 factors compared between the two stocks.

About Regional Management

Regional Management Corp. is a consumer finance company that provides installment loans through its Regional Finance branch network. Its offerings include small-, medium- and large-sized loans, with terms and loan structures tailored to customers’ needs. The company serves consumers who may have limited access to credit from traditional lenders, including borrowers with non-prime credit profiles. It also offers optional insurance and other related products in connection with its lending services.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz is a Kazakhstan-based technology and financial services company that operates a digital ecosystem through its Kaspi.kz super app. Its services connect consumers, merchants and financial institutions across everyday shopping and financial activities. The company’s offerings include an online marketplace, digital payments and financial products such as consumer loans, deposits and merchant services. It also provides services such as travel booking through its platform.