Head to Head Contrast: Regis (NASDAQ:RGS) vs. Medirom Healthcare Technologies (NASDAQ:MRM)

Medirom Healthcare Technologies (NASDAQ:MRM) and Regis (NASDAQ:RGS) are both small-cap services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Institutional and Insider Ownership

31.5% of Regis shares are held by institutional investors. 40.2% of Medirom Healthcare Technologies shares are held by insiders. Comparatively, 4.8% of Regis shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Medirom Healthcare Technologies has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Regis has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Medirom Healthcare Technologies and Regis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medirom Healthcare Technologies	1	0	0	0	1.00
Regis	0	1	0	0	2.00

Earnings and Valuation

This table compares Medirom Healthcare Technologies and Regis”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medirom Healthcare Technologies	$8.07 billion	0.01	$980,000.00	N/A	N/A
Regis	$223.03 million	0.32	$123.54 million	$45.86	0.62

Regis has lower revenue, but higher earnings than Medirom Healthcare Technologies.

Profitability

This table compares Medirom Healthcare Technologies and Regis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medirom Healthcare Technologies	N/A	N/A	N/A
Regis	56.38%	5.06%	1.15%

Summary

Regis beats Medirom Healthcare Technologies on 8 of the 10 factors compared between the two stocks.

About Medirom Healthcare Technologies

MEDIROM Healthcare Technologies Inc. provides holistic healthcare services in Japan. It operates in two segments, Relaxation Salon and Digital Preventative Healthcare. The Relaxation Salon segment owns and franchises relaxation salons, which provide finger-pressure style bodywork therapy, stretch therapy, and posture and joint alignment, as well as physical therapy elements; and various individual services, including anti-fatigue therapy, athletic support therapy, slim-down therapy, and reflexology. As of December 31, 2021, this segment operated 312 relaxation salons under the Re.Ra.Ku and Ruam Ruam brand. The Digital Preventative Healthcare segment offers government-sponsored Specific Health Guidance program, utilizing Lav, its internally developed on-demand health monitoring smartphone application; MOTHER Tracker for fitness applications; and preventative healthcare services utilizing its digital application and devices. MEDIROM Healthcare Technologies Inc. also operates Re.Ra.Ku College that offers continuing training for franchise owners, home office staff, and salon staff covering topics, such as customer service, salon operations, and relaxation techniques located in the Odaiba area in Tokyo. The company was formerly known as MEDIROM Inc. and changed its name to MEDIROM Healthcare Technologies Inc. in March 2020. MEDIROM Healthcare Technologies Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

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.