Analyzing OneMain (NYSE:OMF) and goeasy (OTCMKTS:EHMEF)

goeasy (OTCMKTS:EHMEF) and OneMain (NYSE:OMF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

23.7% of goeasy shares are held by institutional investors. Comparatively, 85.8% of OneMain shares are held by institutional investors. 0.3% of OneMain shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
goeasy	N/A	N/A	N/A
OneMain	13.92%	23.49%	2.92%

Valuation & Earnings

This table compares goeasy and OneMain”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
goeasy	N/A	N/A	N/A	$1.24	25.58
OneMain	$5.46 billion	1.36	$783.00 million	$6.64	9.73

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

Dividends

goeasy pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. OneMain pays an annual dividend of $4.20 per share and has a dividend yield of 6.5%. goeasy pays out 20.5% of its earnings in the form of a dividend. OneMain pays out 63.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OneMain has raised its dividend for 5 consecutive years. OneMain is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and target prices for goeasy and OneMain, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
goeasy	1	3	0	0	1.75
OneMain	1	3	8	0	2.58

OneMain has a consensus price target of $68.40, indicating a potential upside of 5.88%. Given OneMain’s stronger consensus rating and higher possible upside, analysts clearly believe OneMain is more favorable than goeasy.

Summary

OneMain beats goeasy on 12 of the 14 factors compared between the two stocks.

About goeasy

goeasy Ltd. provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. The company operates through two segments, Easyfinancial and Easyhome. It offers unsecured and secured installment loans; home equity secured instalment loans and automotive vehicle financing; and loans to finance the purchase of retail goods, powersports and recreational vehicles, home improvement projects, and healthcare related products and services. The companyleases household furniture, appliances, electronics, and unsecured lending products to retail consumers. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was incorporated in 1990 and is headquartered in Mississauga, Canada.

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.