Critical Survey: PROG (PRG) vs. Its Rivals

PROG (NYSE: PRG) is one of 20 public companies in the “Equipment rental & leasing, not elsewhere classified” industry, but how does it weigh in compared to its rivals? We will compare PROG to similar companies based on the strength of its earnings, dividends, analyst recommendations, profitability, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for PROG and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PROG 0 0 6 0 3.00
PROG Competitors 139 641 931 63 2.52

PROG currently has a consensus target price of $61.25, suggesting a potential upside of 28.49%. As a group, “Equipment rental & leasing, not elsewhere classified” companies have a potential downside of 15.63%. Given PROG’s stronger consensus rating and higher possible upside, research analysts plainly believe PROG is more favorable than its rivals.

Valuation and Earnings

This table compares PROG and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PROG $3.95 billion $31.47 million 12.25
PROG Competitors $1.63 billion $194.25 million 9.64

PROG has higher revenue, but lower earnings than its rivals. PROG is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares PROG and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PROG -5.00% 21.39% 11.26%
PROG Competitors -6.57% -5.74% 1.95%

Volatility & Risk

PROG has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, PROG’s rivals have a beta of 1.50, meaning that their average share price is 50% more volatile than the S&P 500.

Institutional and Insider Ownership

92.5% of PROG shares are held by institutional investors. Comparatively, 65.7% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by institutional investors. 2.8% of PROG shares are held by insiders. Comparatively, 12.0% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

PROG pays an annual dividend of $0.18 per share and has a dividend yield of 0.4%. PROG pays out 4.6% of its earnings in the form of a dividend. As a group, “Equipment rental & leasing, not elsewhere classified” companies pay a dividend yield of 2.3% and pay out 34.4% of their earnings in the form of a dividend.

Summary

PROG beats its rivals on 10 of the 15 factors compared.

About PROG

PROG Holdings, Inc. operates as an omnichannel provider of lease-purchase solutions to underserved and credit-challenged customers. It operates through, Progressive Leasing and Vive. The company offers its lease-purchase solutions to customers for various products in the furniture and appliance, jewelry, mobile phones and accessories, mattress, and automobile electronics and accessories industries. It also provides revolving loans through third-party federally insured banks to customers that may not qualify for traditional prime lending. As of December 01, 2020, the company provided lease-purchase solutions through approximately 30,000 retail partner locations in 46 states and the District of Columbia, including e-commerce merchants. The company was formerly known as Aaron's Holdings Company, Inc. and changed its name to PROG Holdings, Inc. in December 2020. PROG Holdings, Inc. was founded in 1955 and is headquartered in Draper, Utah.

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