Comparing OneMain Holdings (OMF) & Its Peers

OneMain Holdings (NYSE: OMF) is one of 27 publicly-traded companies in the “Consumer Lending” industry, but how does it weigh in compared to its competitors? We will compare OneMain Holdings to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, dividends, earnings, profitability and risk.

Volatility and Risk

OneMain Holdings has a beta of 2.85, suggesting that its share price is 185% more volatile than the S&P 500. Comparatively, OneMain Holdings’ competitors have a beta of 1.48, suggesting that their average share price is 48% more volatile than the S&P 500.

Earnings and Valuation

This table compares OneMain Holdings and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
OneMain Holdings $1.84 billion N/A 29.30
OneMain Holdings Competitors $564.84 million $92.07 million 15.73

OneMain Holdings has higher revenue, but lower earnings than its competitors. OneMain Holdings is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for OneMain Holdings and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OneMain Holdings 0 8 8 0 2.50
OneMain Holdings Competitors 192 744 1066 58 2.48

OneMain Holdings currently has a consensus target price of $29.56, suggesting a potential upside of 7.34%. As a group, “Consumer Lending” companies have a potential upside of 59.32%. Given OneMain Holdings’ competitors higher probable upside, analysts plainly believe OneMain Holdings has less favorable growth aspects than its competitors.

Profitability

This table compares OneMain Holdings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OneMain Holdings 3.63% 14.31% 2.42%
OneMain Holdings Competitors -28.26% -17.28% 0.63%

Institutional and Insider Ownership

95.7% of OneMain Holdings shares are held by institutional investors. Comparatively, 77.6% of shares of all “Consumer Lending” companies are held by institutional investors. 57.7% of OneMain Holdings shares are held by company insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

OneMain Holdings beats its competitors on 8 of the 12 factors compared.

About OneMain Holdings

OneMain Holdings, Inc. is a financial services holding company. The Company is a consumer finance company, which is engaged in providing personal loan products; credit and non-credit insurance, and service loans owned by it and service or subservice loans owned by third-parties. The Company’s segments include Consumer and Insurance; Acquisitions and Servicing; Real Estate, and Other. It is engaged in pursuing strategic acquisitions and dispositions of assets and businesses, including loan portfolios or other financial assets. The Company originates and services personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations. As of December 31, 2016, its combined branch operations included over 1,800 branch offices in 44 states. It offers optional credit insurance products to its customers, including credit life insurance, credit disability insurance, credit involuntary unemployment insurance and collateral protection insurance.

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