Head-To-Head Review: Regis (RGS) versus Its Competitors

Regis (NASDAQ:RGS) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it compare to its peers? We will compare Regis to similar companies based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares Regis and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regis	3.09%	4.10%	1.36%
Regis Competitors	-3.20%	-28.46%	2.44%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Regis and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regis	0	1	1	0	2.50
Regis Competitors	1428	3421	5269	194	2.41

Regis presently has a consensus price target of $42.00, suggesting a potential upside of 44.06%. As a group, “Diversified Consumer Services” companies have a potential upside of 64.49%. Given Regis’ peers higher probable upside, analysts plainly believe Regis has less favorable growth aspects than its peers.

Volatility & Risk

Regis has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Regis’ peers have a beta of 0.47, meaning that their average stock price is 53% less volatile than the S&P 500.

Insider & Institutional Ownership

31.5% of Regis shares are held by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 8.0% of Regis shares are held by insiders. Comparatively, 19.9% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Regis and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Regis	$224.49 million	$6.94 million	12.05
Regis Competitors	$3.24 billion	$219.82 million	11.99

Regis’ peers have higher revenue and earnings than Regis. Regis is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Regis peers beat Regis on 8 of the 13 factors compared.

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.