Regional Management (NYSE:RM) & Jernigan Capital (NASDAQ:JCAP) Critical Comparison
by Mitch Edgeman · The Markets DailyRegional Management (NYSE:RM – Get Free Report) and Jernigan Capital (NASDAQ:JCAP – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Volatility & Risk
Regional Management has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Jernigan Capital has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500.
Insider & Institutional Ownership
98.9% of Regional Management shares are held by institutional investors. 10.9% of Regional Management shares are held by insiders. Comparatively, 8.3% of Jernigan Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Regional Management and Jernigan Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Regional Management | 0 | 2 | 3 | 0 | 2.60 |
| Jernigan Capital | 0 | 2 | 4 | 1 | 2.86 |
Regional Management currently has a consensus target price of $41.50, suggesting a potential upside of 14.44%. Jernigan Capital has a consensus target price of $27.50, suggesting a potential upside of 38.68%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Jernigan Capital is more favorable than Regional Management.
Dividends
Regional Management pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.8%. Regional Management pays out 24.3% of its earnings in the form of a dividend. Jernigan Capital pays out 39.2% 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.
Profitability
This table compares Regional Management and Jernigan Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Regional Management | 6.96% | 12.61% | 2.23% |
| Jernigan Capital | 23.50% | 35.87% | 8.16% |
Earnings & Valuation
This table compares Regional Management and Jernigan Capital”s gross 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 | 0.50 | $44.41 million | $4.94 | 7.34 |
| Jernigan Capital | $613.29 million | 1.86 | $187.96 million | $2.45 | 8.09 |
Jernigan Capital has lower revenue, but higher earnings than Regional Management. Regional Management is trading at a lower price-to-earnings ratio than Jernigan Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Jernigan Capital beats Regional Management on 11 of the 17 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 Jernigan Capital
Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.