PROVIDENT Finl/S (OTCMKTS: FPLPY) and Regional Management (NYSE:RM) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
0.0% of PROVIDENT Finl/S shares are held by institutional investors. Comparatively, 85.6% of Regional Management shares are held by institutional investors. 8.0% of Regional Management shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for PROVIDENT Finl/S and Regional Management, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Regional Management has a consensus price target of $28.80, indicating a potential downside of 20.90%. Given Regional Management’s higher possible upside, analysts clearly believe Regional Management is more favorable than PROVIDENT Finl/S.
PROVIDENT Finl/S pays an annual dividend of $0.54 per share and has a dividend yield of 6.2%. Regional Management does not pay a dividend. PROVIDENT Finl/S pays out 66.7% of its earnings in the form of a dividend.
Volatility and Risk
PROVIDENT Finl/S has a beta of -2.51, meaning that its stock price is 351% less volatile than the S&P 500. Comparatively, Regional Management has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
Earnings & Valuation
This table compares PROVIDENT Finl/S and Regional Management’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PROVIDENT Finl/S||$1.54 billion||0.83||-$173.21 million||$0.81||10.68|
|Regional Management||$272.46 million||1.57||$29.96 million||$2.26||16.11|
Regional Management has lower revenue, but higher earnings than PROVIDENT Finl/S. PROVIDENT Finl/S is trading at a lower price-to-earnings ratio than Regional Management, indicating that it is currently the more affordable of the two stocks.
This table compares PROVIDENT Finl/S and Regional Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Regional Management beats PROVIDENT Finl/S on 13 of the 15 factors compared between the two stocks.
About PROVIDENT Finl/S
Provident Financial plc provides personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland. The company offers credit cards; consumer credit, including unsecured and online instalment loans; and finance for cars and light commercial vehicles. It serves 2.5 million customers through its network of branches, call centers, and Websites. The company was founded in 1880 and is headquartered in Bradford, the United Kingdom.
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.
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