Financial Analysis: Regis (NYSE:RGS) versus Park Lawn (OTCMKTS:PRRWF)

Park Lawn (OTCMKTS:PRRWF) and Regis (NYSE:RGS) are both consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

This table compares Park Lawn and Regis”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Lawn	N/A	N/A	N/A	N/A	N/A
Regis	$202.98 million	0.27	$91.06 million	($1.97)	-12.23

Regis has higher revenue and earnings than Park Lawn.

Institutional and Insider Ownership

31.5% of Regis shares are held by institutional investors. 1.6% of Regis shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Park Lawn and Regis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Lawn	N/A	N/A	N/A
Regis	44.86%	-119.67%	2.57%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Park Lawn and Regis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Lawn	0	0	1	0	3.00
Regis	0	0	0	0	N/A

Park Lawn presently has a consensus price target of $32.33, suggesting a potential upside of 68.14%. Given Park Lawn’s higher probable upside, equities research analysts clearly believe Park Lawn is more favorable than Regis.

Summary

Regis beats Park Lawn on 5 of the 8 factors compared between the two stocks.

About Park Lawn

Park Lawn Corporation, together with its subsidiaries, owns and operates cemeteries, crematoriums, and funeral homes in Canada and the United States. The company primarily offers cemetery lots, mausoleum crypts, niches, monuments, caskets, urns, outer burial containers, flowers, online and video tribute, and other merchandise, as well as funeral, cemetery, and cremation services. It also engages in the filing of death certificates and publication of death notices; and body preparation activities. The company was founded in 1892 and is headquartered in Toronto, Canada.

About Regis

Regis Corporation owns and franchises hair care salons in North America. The company operates through two segments, Franchise Salons and Company-Owned Salons. Its salons provide haircutting; styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products. The company also operates accredited cosmetology schools. It operates its salons primarily under the SmartStyle, Supercuts, Cost Cutters, Roosters, First Choice Haircutters, and Magicuts concepts names. Regis Corporation was founded in 1922 and is headquartered in Minneapolis, Minnesota.