Enova International (NYSE:ENVA) and OneMain (NYSE:OMF) Critical Analysis

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

Insider and Institutional Ownership

89.4% of Enova International shares are held by institutional investors. Comparatively, 85.8% of OneMain shares are held by institutional investors. 8.4% of Enova International shares are held by insiders. Comparatively, 0.3% of OneMain 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enova International	10.47%	27.25%	5.60%
OneMain	13.43%	21.90%	2.68%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Enova International and OneMain, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enova International	0	1	8	0	2.89
OneMain	1	3	9	0	2.62

Enova International presently has a consensus price target of $239.00, suggesting a potential upside of 37.60%. OneMain has a consensus price target of $66.82, suggesting a potential upside of 17.60%. Given Enova International’s stronger consensus rating and higher possible upside, analysts plainly believe Enova International is more favorable than OneMain.

Earnings and Valuation

This table compares Enova International and OneMain”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enova International	$3.15 billion	1.35	$308.39 million	$14.52	11.96
OneMain	$5.46 billion	1.19	$783.00 million	$6.57	8.65

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

Risk & Volatility

Enova International has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, OneMain has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Summary

Enova International beats OneMain on 10 of the 14 factors compared between the two stocks.

About Enova International

Enova International, Inc., a technology and analytics company, provides online financial services in the United States, Brazil, and internationally. The company provides installment loans; line of credit accounts; CSO programs, including arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs, such as marketing services and loan servicing for near-prime unsecured consumer installment loan. It offers money transfer services. It markets its financing products under the CashNetUSA, NetCredit, OnDeck, Headway Capital, Simplic, and Pangea names. The company was founded in 2003 and is headquartered in Chicago, Illinois.

About OneMain

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It sells its products through its website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.