Critical Review: Regional Management (RM) versus IEG (IEGH)

Regional Management (NYSE:RM) and IEG (OTC:IEGH) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

This table compares Regional Management and IEG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regional Management 11.64% 12.87% 3.81%
IEG N/A N/A N/A

Earnings and Valuation

This table compares Regional Management and IEG’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regional Management $272.46 million 1.27 $29.96 million $2.26 12.98
IEG N/A N/A N/A N/A N/A

Regional Management has higher revenue and earnings than IEG.

Insider & Institutional Ownership

86.0% of Regional Management shares are held by institutional investors. Comparatively, 0.1% of IEG shares are held by institutional investors. 8.0% of Regional Management shares are held by insiders. Comparatively, 39.5% of IEG shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

IEG pays an annual dividend of $0.01 per share and has a dividend yield of 3.7%. Regional Management does not pay a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Regional Management and IEG, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regional Management 0 3 1 0 2.25
IEG 0 0 1 0 3.00

Regional Management presently has a consensus target price of $33.25, indicating a potential upside of 13.33%. IEG has a consensus target price of $0.80, indicating a potential upside of 196.30%. Given IEG’s stronger consensus rating and higher probable upside, analysts plainly believe IEG is more favorable than Regional Management.

Summary

Regional Management beats IEG on 5 of the 9 factors compared between the two stocks.

About Regional Management

Regional Management Corp., a diversified consumer finance company, provides various loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders. The company offers small and large installment loans; automobile purchase loans; loans to finance the purchase of furniture, appliances, and other retail products; 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. Its loan products are secured and structured on a fixed rate and fixed term basis with fully amortizing equal monthly installment payments repayable at any time without penalty. The company's loans are sourced through branches, direct mail campaigns, retailers, and digital partners, as well as its consumer Website. As of February 13, 2018, it operated through a network of 342 branches located in South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico, Georgia, and Virginia. The company was founded in 1987 and is headquartered in Greer, South Carolina.

About IEG

IEG Holdings Corporation, a consumer finance company, provides online unsecured consumer loans to individuals. It offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its unsecured consumer loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 19 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia. IEG Holdings Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.

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