Regional Management (NYSE:RM – Get Free Report) and X Financial (NYSE:XYF – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Dividends
Regional Management pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. X Financial pays an annual dividend of $0.54 per share and has a dividend yield of 9.8%. Regional Management pays out 25.3% of its earnings in the form of a dividend. X Financial pays out 27.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Analyst Recommendations
This is a summary of recent ratings and price targets for Regional Management and X Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Regional Management | 0 | 2 | 2 | 0 | 2.50 |
| X Financial | 0 | 1 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
98.9% of Regional Management shares are held by institutional investors. Comparatively, 1.1% of X Financial shares are held by institutional investors. 10.9% of Regional Management shares are held by insiders. Comparatively, 31.6% of X Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Regional Management and X Financial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Regional Management | $645.60 million | 0.48 | $44.41 million | $4.75 | 7.05 |
| X Financial | $1.09 billion | 0.20 | $209.43 million | $1.96 | 2.81 |
X Financial has higher revenue and earnings than Regional Management. X Financial is trading at a lower price-to-earnings ratio than Regional Management, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Regional Management has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, X Financial has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.
Profitability
This table compares Regional Management and X Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Regional Management | 6.98% | 12.49% | 2.25% |
| X Financial | 9.94% | 9.14% | 5.20% |
Summary
Regional Management beats X Financial on 10 of the 16 factors compared between the two stocks.
About Regional Management
Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders in the United States. It offers small and large installment loans; and retail loans to finance the purchase of furniture, appliances, and other retail products. The company also provides 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. In addition, its loans are sourced through branches, centrally-managed direct mail campaigns, and digital partners, as well as its consumer website. The company was incorporated in 1987 and is headquartered in Greer, South Carolina.
About X Financial
X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.
Receive News & Ratings for Regional Management Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Regional Management and related companies with MarketBeat.com's FREE daily email newsletter.
