Dave (NASDAQ:DAVE) and OneMain (NYSE:OMF) Head-To-Head Analysis

Dave (NASDAQ:DAVE) and OneMain (NYSE:OMF) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Institutional and Insider Ownership

18.0% of Dave shares are owned by institutional investors. Comparatively, 85.8% of OneMain shares are owned by institutional investors. 23.6% of Dave shares are owned by insiders. Comparatively, 0.3% of OneMain shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dave	$554.20 million	7.11	$195.87 million	$15.42	20.10
OneMain	$5.12 billion	1.43	$783.00 million	$6.64	9.60

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dave	34.58%	77.46%	40.44%
OneMain	13.92%	23.49%	2.92%

Risk and Volatility

Dave has a beta of 3.83, suggesting that its share price is 283% more volatile than the S&P 500. Comparatively, OneMain has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Dave and OneMain, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dave	0	2	11	1	2.93
OneMain	1	3	8	0	2.58

Dave presently has a consensus price target of $412.90, suggesting a potential upside of 33.19%. OneMain has a consensus price target of $68.40, suggesting a potential upside of 7.27%. Given Dave’s stronger consensus rating and higher possible upside, analysts plainly believe Dave is more favorable than OneMain.

Summary

Dave beats OneMain on 12 of the 15 factors compared between the two stocks.

About Dave

Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.

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.