Analyzing IEG (IEGH) and Santander Consumer USA (SC)

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IEG (OTCMKTS:IEGH) and Santander Consumer USA (NYSE:SC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Dividends

IEG pays an annual dividend of $0.01 per share. Santander Consumer USA pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. Santander Consumer USA pays out 31.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for IEG and Santander Consumer USA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IEG 0 0 1 0 3.00
Santander Consumer USA 2 6 5 0 2.23

IEG currently has a consensus price target of $0.80, indicating a potential upside of ∞. Santander Consumer USA has a consensus price target of $23.82, indicating a potential upside of 16.53%. Given IEG’s stronger consensus rating and higher possible upside, analysts clearly believe IEG is more favorable than Santander Consumer USA.

Earnings and Valuation

This table compares IEG and Santander Consumer USA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IEG N/A N/A N/A N/A N/A
Santander Consumer USA $7.13 billion 1.03 $915.93 million $2.54 8.05

Santander Consumer USA has higher revenue and earnings than IEG.

Institutional & Insider Ownership

0.1% of IEG shares are owned by institutional investors. 39.5% of IEG shares are owned by company insiders. Comparatively, 0.1% of Santander Consumer USA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares IEG and Santander Consumer USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IEG N/A N/A N/A
Santander Consumer USA 13.00% 13.10% 2.21%

Summary

Santander Consumer USA beats IEG on 6 of the 11 factors compared between the two stocks.

About IEG

IEG Holdings Corporation, a consumer finance company, provides online unsecured consumer loans to individuals. It offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its unsecured consumer loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 19 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia. IEG Holdings Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.

About Santander Consumer USA

Santander Consumer USA Holdings Inc., a specialized consumer finance company, provides vehicle finance and third-party servicing in the United States. Its products and services include retail installment contracts and vehicle leases, as well as dealer loans for inventory, construction, real estate, working capital, and revolving lines of credit. The company also offers financial products and services related to motorcycles, recreational vehicles, and marine vehicles; originates vehicle loans through a Web-based direct lending program; purchases vehicle retail installment contracts from other lenders; and services automobile, and recreational and marine vehicle portfolios for other lenders. In addition, it provides private-label credit cards and other consumer finance products, as well as point-of-sale financing. The company was founded in 1995 and is headquartered in Dallas, Texas. Santander Consumer USA Holdings Inc. is a subsidiary of Santander Holdings USA, Inc.

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