SLM vs. NNI, CACC, OMF, ENVA, OCSL, ONB, FG, EEFT, THG, and LNC
Should you be buying SLM stock or one of its competitors? The main competitors of SLM include Nelnet (NNI), Credit Acceptance (CACC), OneMain (OMF), Enova International (ENVA), Oaktree Specialty Lending (OCSL), Old National Bancorp (ONB), F&G Annuities & Life (FG), Euronet Worldwide (EEFT), The Hanover Insurance Group (THG), and Lincoln National (LNC). 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 investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, community ranking, risk, institutional ownership, earnings, analyst recommendations and media sentiment.
Nelnet currently has a consensus target price of $95.00, suggesting a potential downside of 0.94%. SLM has a consensus target price of $21.32, suggesting a potential downside of 0.75%. Given Nelnet's stronger consensus rating and higher possible upside, analysts clearly believe SLM is more favorable than Nelnet.
SLM received 217 more outperform votes than Nelnet when rated by MarketBeat users. Likewise, 69.16% of users gave SLM an outperform vote while only 66.92% of users gave Nelnet an outperform vote.
SLM has a net margin of 25.15% compared to SLM's net margin of 4.43%. Nelnet's return on equity of 45.65% beat SLM's return on equity.
Nelnet pays an annual dividend of $1.12 per share and has a dividend yield of 1.2%. SLM pays an annual dividend of $0.44 per share and has a dividend yield of 2.0%. Nelnet pays out 45.9% 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. Nelnet has raised its dividend for 9 consecutive years. SLM is clearly the better dividend stock, given its higher yield and lower payout ratio.
SLM has higher revenue and 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.
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 insiders. Comparatively, 0.9% of SLM shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
In the previous week, SLM had 15 more articles in the media than Nelnet. MarketBeat recorded 18 mentions for SLM and 3 mentions for Nelnet. SLM's average media sentiment score of 0.37 beat Nelnet's score of 0.34 indicating that Nelnet is being referred to more favorably in the media.
Nelnet has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, SLM has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Summary
SLM beats Nelnet on 16 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SLM 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 NASDAQ 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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