Reviewing Rent-A-Center Inc. (RCII)’s and Its Competitors results

We are contrasting Rent-A-Center Inc. (NASDAQ:RCII) and its competitors on their risk, analyst recommendations, profitability, dividends, earnings and valuation, institutional ownership. They are Rental & Leasing Services companies, competing one another.

Insider and Institutional Ownership

0% of Rent-A-Center Inc.’s shares are owned by institutional investors. Comparatively, 53.67% of all Rental & Leasing Services’s companies shares are owned by institutional investors. On other hand Rent-A-Center Inc. has 2.58% of its shares owned by company insiders vs. an average of 16.50% insiders ownership for its peers.

Profitability

Table 1 has Rent-A-Center Inc. and its peers’ net margins, return on assets and return on equity.

Net Margins Return on Equity Return on Assets
Rent-A-Center Inc. 1.58% 15.40% 3.00%
Industry Average 11.62% 26.87% 5.36%

Earnings & Valuation

In next table we are contrasting Rent-A-Center Inc. and its peers’ valuation, gross revenue and net income.

Net Income Gross Revenue Price/Earnings Ratio
Rent-A-Center Inc. 41.65M 2.64B 0.00
Industry Average 155.11M 1.33B 15.87

Analyst Ratings

Table 3 provides summary of current ratings for Rent-A-Center Inc. and its peers.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Rent-A-Center Inc. 1 1 1 2.33
Industry Average 1.00 1.22 2.27 2.41

Rent-A-Center Inc. presently has a consensus price target of $17.75, suggesting a potential upside of 3.32%. As a group, Rental & Leasing Services companies have a potential upside of 0.74%. Based on the results delivered earlier the analysts’ view is that Rent-A-Center Inc.’s peers are looking more favorable than the company itself.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of Rent-A-Center Inc. and its peers.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Rent-A-Center Inc. -1.09% 0.41% -1.69% 33.21% 23.79% 30.81%
Industry Average 9.26% 1.98% 3.41% 11.67% 23.60% 29.23%

For the past year Rent-A-Center Inc. has stronger performance than Rent-A-Center Inc.’s peers.

Volatility & Risk

Rent-A-Center Inc. has a beta of 0.64 and its 36.00% less volatile than Standard & Poor’s 500. In other hand, Rent-A-Center Inc.’s peers have beta of 1.51 which is 51.35% more volatile than Standard & Poor’s 500.

Dividends

Rent-A-Center Inc. does not pay a dividend.

Summary

Rent-A-Center Inc.’s peers beat Rent-A-Center Inc. on 3 of the 4 factors.

Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. The company operates through four segments: Core U.S., Acceptance Now, Mexico, and Franchising. It offers durable products, such as consumer electronics; appliances; computers, including tablets; smartphones; and furniture, including accessories under rental purchase agreements. The company also provides merchandise on an installment sales basis; and offers the rent-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks within retailerÂ’s locations. It operates retail installment sales stores under the Get It Now and Home Choice names; and rent-to-own and franchised rent-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names. As of December 31, 2016, the company owned and operated approximately 2,463 stores in the United States, Canada, and Puerto Rico, including 45 retail installment sales stores; 1,431 Acceptance Now kiosk locations in 40 states and Puerto Rico; 478 Acceptance Now virtual (direct) locations; and 130 stores in Mexico, as well as franchised 229 rent-to-own stores in 31 states under the Rent-A-Center, ColorTyme, and RimTyme names. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.