Analyzing OneMain (NYSE:OMF) and Manhattan Bridge Capital (NASDAQ:LOAN)

OneMain (NYSE:OMF) and Manhattan Bridge Capital (NASDAQ:LOAN) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Volatility & Risk

OneMain has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Manhattan Bridge Capital has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for OneMain and Manhattan Bridge Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	0	3	6	1	2.80
Manhattan Bridge Capital	0	0	0	0	0.00

OneMain presently has a consensus target price of $60.78, suggesting a potential upside of 5.39%. Given OneMain’s stronger consensus rating and higher probable upside, equities research analysts clearly believe OneMain is more favorable than Manhattan Bridge Capital.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneMain	$4.99 billion	1.37	$509.00 million	$5.54	10.41
Manhattan Bridge Capital	$9.69 million	6.40	$5.59 million	$0.47	11.53

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneMain	12.63%	20.77%	2.59%
Manhattan Bridge Capital	59.04%	12.68%	8.07%

Dividends

OneMain pays an annual dividend of $4.16 per share and has a dividend yield of 7.2%. Manhattan Bridge Capital pays an annual dividend of $0.46 per share and has a dividend yield of 8.5%. OneMain pays out 75.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manhattan Bridge Capital pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OneMain has raised its dividend for 5 consecutive years and Manhattan Bridge Capital has raised its dividend for 1 consecutive years.

Insider & Institutional Ownership

85.8% of OneMain shares are owned by institutional investors. Comparatively, 21.8% of Manhattan Bridge Capital shares are owned by institutional investors. 0.4% of OneMain shares are owned by company insiders. Comparatively, 24.5% of Manhattan Bridge Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

OneMain beats Manhattan Bridge Capital on 12 of the 18 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 Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.