Analyzing Matthews International (NASDAQ:MATW) and Regis (NASDAQ:RGS)

Matthews International (NASDAQ:MATW) and Regis (NASDAQ:RGS) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Matthews International has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Regis has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Valuation & Earnings

This table compares Matthews International and Regis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matthews International	$1.50 billion	0.40	-$24.47 million	($0.93)	-20.68
Regis	$224.49 million	0.33	$6.94 million	$2.42	12.23

Regis has lower revenue, but higher earnings than Matthews International. Matthews International is trading at a lower price-to-earnings ratio than Regis, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

83.1% of Matthews International shares are held by institutional investors. Comparatively, 31.5% of Regis shares are held by institutional investors. 4.7% of Matthews International shares are held by company insiders. Comparatively, 8.0% of Regis shares are held by company 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Matthews International and Regis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matthews International	1	2	0	0	1.67
Regis	0	1	1	0	2.50

Matthews International currently has a consensus price target of $24.00, indicating a potential upside of 24.80%. Regis has a consensus price target of $42.00, indicating a potential upside of 41.91%. Given Regis’ stronger consensus rating and higher possible upside, analysts plainly believe Regis is more favorable than Matthews International.

Profitability

This table compares Matthews International and Regis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Matthews International	-2.65%	4.51%	1.45%
Regis	3.09%	4.10%	1.36%

Summary

Regis beats Matthews International on 9 of the 14 factors compared between the two stocks.

About Matthews International

Matthews International Corporation provides brand solutions, memorialization products, and industrial technologies worldwide. It operates through three segments: Memorialization, Industrial Technologies, and SGK Brand Solutions. The Memorialization segment provides bronze and granite memorials, upright granite memorials and monuments, concrete burial vaults, cremation memorialization products, granite benches, flower vases, crypt plates and letters, cremation urns, niche units, cemetery features, and statues, as well as bronze plaques, letters, emblems, vases, lights and photo ceramics, granite monuments, mausoleums, crypts, and flush memorials. The Industrial Technologies segment designs, manufactures, services, and distributes high-tech custom energy storage solutions, and product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products. This segment also provides engineered calendaring, laminating, and coating equipment; stand-alone marking products; laser and ink-jet printing systems; and spare parts, calendar, and coating-roller refurbishing and retrofits. The SGK Brand solutions segment provides brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services for the consumer goods and retail industries. The company was founded in 1850 and is based in Pittsburgh, Pennsylvania.

About Regis

Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, the United Kingdom, Canada, and Puerto Rico. The company operates in two segments, Franchise Salons and Company-owned Salons. Its salons provide haircutting and styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products. The company also offers OpenSalon Pro, a back-office salon management system; and Opensalon mobile application. Regis Corporation operates its salons primarily under the SmartStyle, Supercuts, Cost Cutters, Roosters, and First Choice Haircutters names. As of June 30, 2021, the company operated 5,917 salons, such as 5,563 franchised salons, 276 company-owned salons, and 78 non-controlling ownership salons. It also operates accredited cosmetology schools. The company was founded in 1922 and is headquartered in Minneapolis, Minnesota.