OneMain (NYSE:OMF – Get Free Report) and Vroom (NASDAQ:VRM – Get Free Report) are both 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.
Profitability
This table compares OneMain and Vroom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OneMain | 13.92% | 23.49% | 2.92% |
| Vroom | -32.38% | -47.65% | -5.59% |
Earnings & Valuation
This table compares OneMain and Vroom”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneMain | $5.46 billion | 1.27 | $783.00 million | $6.64 | 9.08 |
| Vroom | $178.83 million | 0.30 | -$7.96 million | ($11.12) | -0.91 |
OneMain has higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than OneMain, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for OneMain and Vroom, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneMain | 1 | 3 | 8 | 0 | 2.58 |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
OneMain presently has a consensus target price of $68.40, suggesting a potential upside of 13.47%. Given OneMain’s stronger consensus rating and higher possible upside, analysts plainly believe OneMain is more favorable than Vroom.
Volatility & Risk
OneMain has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Vroom has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Insider & Institutional Ownership
85.8% of OneMain shares are owned by institutional investors. Comparatively, 25.8% of Vroom shares are owned by institutional investors. 0.3% of OneMain shares are owned by company insiders. Comparatively, 2.9% of Vroom 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.
Summary
OneMain beats Vroom on 12 of the 14 factors compared between the two stocks.
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.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
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