Head-To-Head Survey: Regional Management (RM) versus Its Competitors

Regional Management (NYSE:RM) is one of 120 public companies in the “Consumer Finance” industry, but how does it contrast to its rivals? We will compare Regional Management to related businesses based on the strength of its valuation, analyst recommendations, earnings, profitability, dividends, risk and institutional ownership.

Volatility and Risk

Regional Management has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Regional Management’s rivals have a beta of 1.26, suggesting that their average stock price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares Regional Management and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Regional Management	$645.60 million	$44.41 million	7.34
Regional Management Competitors	$3.61 billion	$385.17 million	5.79

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

Profitability

This table compares Regional Management and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regional Management	6.96%	12.61%	2.23%
Regional Management Competitors	9.92%	-15.65%	2.14%

Dividends

Regional Management pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. Regional Management pays out 24.3% of its earnings in the form of a dividend. As a group, “Consumer Finance” companies pay a dividend yield of 6.1% and pay out 34.2% of their earnings in the form of a dividend.

Institutional & Insider Ownership

98.9% of Regional Management shares are owned by institutional investors. Comparatively, 45.8% of shares of all “Consumer Finance” companies are owned by institutional investors. 10.9% of Regional Management shares are owned by company insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Regional Management and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regional Management	0	2	3	0	2.60
Regional Management Competitors	891	3351	5292	274	2.50

Regional Management currently has a consensus target price of $41.50, indicating a potential upside of 14.44%. As a group, “Consumer Finance” companies have a potential upside of 21.20%. Given Regional Management’s rivals higher possible upside, analysts clearly believe Regional Management has less favorable growth aspects than its rivals.

Summary

Regional Management rivals beat Regional Management on 8 of the 15 factors compared.

About Regional Management

Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders in the United States. It offers small and large installment loans; and retail loans to finance the purchase of furniture, appliances, and other retail products. The company also provides insurance products, including credit life, credit accident and health, credit property, vehicle single interest, and credit involuntary unemployment insurance; collateral protection insurance; and property insurance, as well as reinsurance products. In addition, its loans are sourced through branches, centrally-managed direct mail campaigns, and digital partners, as well as its consumer website. The company was incorporated in 1987 and is headquartered in Greer, South Carolina.