OneMain (NYSE:OMF) versus Encore Capital Group (NASDAQ:ECPG) Head to Head Review

Encore Capital Group (NASDAQ:ECPG) and OneMain (NYSE:OMF) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Volatility & Risk

Encore Capital Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, OneMain has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Earnings and Valuation

This table compares Encore Capital Group and OneMain”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Encore Capital Group	$1.77 billion	1.51	$256.83 million	$13.21	9.55
OneMain	$5.46 billion	1.19	$783.00 million	$6.57	8.65

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

Insider & Institutional Ownership

85.8% of OneMain shares are owned by institutional investors. 3.0% of Encore Capital Group shares are owned by company insiders. Comparatively, 0.3% of OneMain shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Encore Capital Group and OneMain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Encore Capital Group	0	1	5	0	2.83
OneMain	1	3	9	0	2.62

Encore Capital Group presently has a consensus target price of $112.00, suggesting a potential downside of 11.23%. OneMain has a consensus target price of $66.82, suggesting a potential upside of 17.60%. Given OneMain’s higher possible upside, analysts plainly believe OneMain is more favorable than Encore Capital Group.

Profitability

This table compares Encore Capital Group and OneMain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Encore Capital Group	17.67%	34.07%	6.44%
OneMain	13.43%	21.90%	2.68%

About Encore Capital Group

Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.

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.