Enova International (ENVA) vs. Regional Management (RM) Financial Contrast

Regional Management (NYSE: RM) and Enova International (NYSE:ENVA) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Regional Management and Enova International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regional Management 0 4 1 0 2.20
Enova International 0 0 4 0 3.00



Regional Management currently has a consensus target price of $28.80, suggesting a potential downside of 20.31%. Enova International has a consensus target price of $27.00, suggesting a potential downside of 23.84%. Given Regional Management’s higher probable upside, research analysts plainly believe Regional Management is more favorable than Enova International.

Volatility and Risk

Regional Management has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Enova International has a beta of 2.85, indicating that its stock price is 185% more volatile than the S&P 500.

Earnings & Valuation

This table compares Regional Management and Enova International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regional Management $272.46 million 1.56 $29.96 million $2.26 15.99
Enova International $843.74 million 1.42 $29.24 million $1.15 30.83

Regional Management has higher earnings, but lower revenue than Enova International. Regional Management is trading at a lower price-to-earnings ratio than Enova International, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Regional Management 11.09% 12.51% 3.72%
Enova International 4.78% 20.25% 5.21%

Insider and Institutional Ownership

85.6% of Regional Management shares are owned by institutional investors. Comparatively, 92.5% of Enova International shares are owned by institutional investors. 8.0% of Regional Management shares are owned by company insiders. Comparatively, 5.6% of Enova International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Enova International beats Regional Management on 8 of the 14 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 Enova International

Enova International, Inc., a technology and analytics company, provides online financial services. The company offers short-term consumer loans; line of credit accounts; installment loans; receivables purchase agreements; CSO programs, including credit-related services, such as arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs comprising technology, loan servicing, and marketing services to the bank, as well as Enova Decisions, an analytics as a service that enables companies to take decisions about their customers through existing tools and technologies. It offers loans to consumers under the names CashNetUSA and NetCredit in the United States; QuickQuid, Pounds to Pocket, and On Stride Financial names in the United Kingdom; and Simplic name in Brazil. The company also offers financing to small businesses under the names Headway Capital and The Business Backer in the United States. Enova International, Inc. was founded in 2011 and is headquartered in Chicago, Illinois.

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