OneMain (NYSE:OMF) versus Enova International (NYSE:ENVA) Critical Contrast

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

Volatility & Risk

OneMain has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Enova International has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Institutional and Insider Ownership

85.8% of OneMain shares are owned by institutional investors. Comparatively, 89.4% of Enova International shares are owned by institutional investors. 0.3% of OneMain shares are owned by insiders. Comparatively, 8.4% of Enova International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for OneMain and Enova International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	1	3	9	0	2.62
Enova International	0	1	8	0	2.89

OneMain currently has a consensus price target of $67.09, indicating a potential upside of 18.62%. Enova International has a consensus price target of $239.00, indicating a potential upside of 37.70%. Given Enova International’s stronger consensus rating and higher possible upside, analysts clearly believe Enova International is more favorable than OneMain.

Earnings and Valuation

This table compares OneMain and Enova International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneMain	$5.46 billion	1.19	$783.00 million	$6.64	8.52
Enova International	$3.15 billion	1.35	$308.39 million	$14.52	11.95

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

Profitability

This table compares OneMain and Enova International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneMain	13.43%	21.91%	2.72%
Enova International	10.47%	27.25%	5.60%

Summary

Enova International beats OneMain on 10 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 Enova International

Enova International, Inc., a technology and analytics company, provides online financial services in the United States, Brazil, and internationally. The company provides installment loans; line of credit accounts; CSO programs, including arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs, such as marketing services and loan servicing for near-prime unsecured consumer installment loan. It offers money transfer services. It markets its financing products under the CashNetUSA, NetCredit, OnDeck, Headway Capital, Simplic, and Pangea names. The company was founded in 2003 and is headquartered in Chicago, Illinois.