NNI vs. SLM, CACC, ENVA, OCSL, LC, OMF, APLE, CTRE, CUZ, and CNS
Should you be buying Nelnet stock or one of its competitors? The main competitors of Nelnet include SLM (SLM), Credit Acceptance (CACC), Enova International (ENVA), Oaktree Specialty Lending (OCSL), LendingClub (LC), OneMain (OMF), Apple Hospitality REIT (APLE), CareTrust REIT (CTRE), Cousins Properties (CUZ), and Cohen & Steers (CNS). These companies are all part of the "finance" sector.
Nelnet (NYSE:NNI) and SLM (NASDAQ:SLM) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their community ranking, analyst recommendations, valuation, profitability, media sentiment, risk, dividends, earnings and institutional ownership.
Nelnet presently has a consensus price target of $96.00, suggesting a potential downside of 12.91%. SLM has a consensus price target of $21.32, suggesting a potential upside of 0.75%. Given SLM's stronger consensus rating and higher possible upside, analysts plainly believe SLM is more favorable than Nelnet.
Nelnet pays an annual dividend of $1.12 per share and has a dividend yield of 1.0%. SLM pays an annual dividend of $0.44 per share and has a dividend yield of 2.1%. Nelnet pays out 30.3% of its earnings in the form of a dividend. SLM pays out 13.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SLM is clearly the better dividend stock, given its higher yield and lower payout ratio.
33.5% of Nelnet shares are held by institutional investors. Comparatively, 98.9% of SLM shares are held by institutional investors. 50.1% of Nelnet shares are held by company insiders. Comparatively, 0.9% of SLM shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
SLM has a net margin of 25.15% compared to Nelnet's net margin of 6.54%. SLM's return on equity of 45.65% beat Nelnet's return on equity.
SLM received 217 more outperform votes than Nelnet when rated by MarketBeat users. Likewise, 69.21% of users gave SLM an outperform vote while only 66.84% of users gave Nelnet an outperform vote.
In the previous week, SLM had 7 more articles in the media than Nelnet. MarketBeat recorded 15 mentions for SLM and 8 mentions for Nelnet. SLM's average media sentiment score of 0.57 beat Nelnet's score of 0.53 indicating that SLM is being referred to more favorably in the news media.
SLM has lower revenue, but higher earnings than Nelnet. SLM is trading at a lower price-to-earnings ratio than Nelnet, indicating that it is currently the more affordable of the two stocks.
Nelnet has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, SLM has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Summary
SLM beats Nelnet on 16 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NNI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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