Critical Survey: Rent-A-Center (RCII) and MITCHAM INDUSTR/SH (MIND)

Rent-A-Center (NASDAQ:RCII) and MITCHAM INDUSTR/SH (NASDAQ:MIND) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Volatility and Risk

Rent-A-Center has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, MITCHAM INDUSTR/SH has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Profitability

This table compares Rent-A-Center and MITCHAM INDUSTR/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rent-A-Center 0.61% -3.42% -0.63%
MITCHAM INDUSTR/SH -67.30% -39.33% -27.84%

Analyst Recommendations

This is a summary of recent ratings and price targets for Rent-A-Center and MITCHAM INDUSTR/SH, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rent-A-Center 1 5 0 0 1.83
MITCHAM INDUSTR/SH 0 0 0 0 N/A

Rent-A-Center presently has a consensus price target of $10.50, suggesting a potential downside of 25.58%. Given Rent-A-Center’s higher possible upside, equities research analysts clearly believe Rent-A-Center is more favorable than MITCHAM INDUSTR/SH.

Earnings and Valuation

This table compares Rent-A-Center and MITCHAM INDUSTR/SH’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rent-A-Center $2.70 billion 0.28 $6.65 million ($0.54) -26.13
MITCHAM INDUSTR/SH $48.28 million 1.00 -$21.06 million N/A N/A

Rent-A-Center has higher revenue and earnings than MITCHAM INDUSTR/SH.

Institutional and Insider Ownership

94.3% of Rent-A-Center shares are held by institutional investors. Comparatively, 72.1% of MITCHAM INDUSTR/SH shares are held by institutional investors. 0.9% of Rent-A-Center shares are held by insiders. Comparatively, 9.8% of MITCHAM INDUSTR/SH shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Rent-A-Center beats MITCHAM INDUSTR/SH on 7 of the 10 factors compared between the two stocks.

About Rent-A-Center

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 retailer'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, 2017, the company owned and operated approximately 2,381 stores in the United States, Canada, and Puerto Rico, including 45 retail installment sales stores; 1,106 Acceptance Now staffed locations in 42 states and Puerto Rico; 125 Acceptance Now Direct locations; and 131 stores in Mexico, as well as franchised 225 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.

About MITCHAM INDUSTR/SH

Mitcham Industries, Inc., through its subsidiaries, provides technology to the oceanographic, hydrographic, defense, seismic and maritime security industries worldwide. The company operates in two segments, Marine Technology Products, and Equipment Leasing. The Marine Technology Products segment develops, manufactures, and sells proprietary products. Its products include GunLink seismic source acquisition and control systems that provide operators of marine seismic surveys with precise monitoring and control of energy sources; BuoyLink RGPS tracking systems, which are used to offer precise positioning of marine seismic energy sources and streamers; Digishot energy source controllers; Sleeve Gun energy sources; and SeaLink product line of marine sensors and solid streamer systems. This segment also provides streamer weight collars, depth and pressure transducers, air control valves, and source array systems; spare and replacement parts; repair services, engineering services, training, field service operations, and umbilical termination; and equipment, consumables, systems integration, engineering hardware, and software maintenance support services. The Equipment Leasing segment leases seismic equipment for short-term primarily to seismic data acquisition contractors and oil field service providers. This segment is also involved in the sale of other seismic equipment of other manufacturers; and used equipment from its lease pool. Mitcham Industries, Inc. was founded in 1987 and is headquartered in Huntsville, Texas.

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