OneMain Holdings (NYSE: OMF) and Navient Corp (NASDAQ:NAVIV) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Valuation & Earnings

This table compares OneMain Holdings and Navient Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OneMain Holdings $1.84 billion 2.02 $127.18 million $0.94 29.20
Navient Corp N/A N/A N/A N/A N/A

OneMain Holdings has higher revenue and earnings than Navient Corp.

Insider and Institutional Ownership

95.5% of OneMain Holdings shares are owned by institutional investors. 57.7% of OneMain Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares OneMain Holdings and Navient Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OneMain Holdings 3.63% 14.31% 2.42%
Navient Corp 31.91% 12.50% 0.38%

Analyst Ratings

This is a breakdown of recent ratings and target prices for OneMain Holdings and Navient Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OneMain Holdings 0 9 7 0 2.44
Navient Corp 0 0 0 0 N/A

OneMain Holdings presently has a consensus target price of $29.06, indicating a potential upside of 5.87%. Given OneMain Holdings’ higher possible upside, research analysts plainly believe OneMain Holdings is more favorable than Navient Corp.

Summary

OneMain Holdings beats Navient Corp on 7 of the 8 factors compared between the two stocks.

OneMain Holdings Company Profile

OneMain Holdings, Inc. is a financial services holding company. The Company is a consumer finance company, which is engaged in providing personal loan products; credit and non-credit insurance, and service loans owned by it and service or subservice loans owned by third-parties. The Company’s segments include Consumer and Insurance; Acquisitions and Servicing; Real Estate, and Other. It is engaged in pursuing strategic acquisitions and dispositions of assets and businesses, including loan portfolios or other financial assets. The Company originates and services personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations. As of December 31, 2016, its combined branch operations included over 1,800 branch offices in 44 states. It offers optional credit insurance products to its customers, including credit life insurance, credit disability insurance, credit involuntary unemployment insurance and collateral protection insurance.

Navient Corp Company Profile

Navient Corporation provides asset management and business processing services to education, healthcare and government clients at the federal, state and local levels. The Company holds the portfolio of education loans insured or federally guaranteed under the Federal Family Education Loan Program (FFELP). It operates through four segments: FFELP Loans, Private Education Loans, Business Services and Other. It also holds the portfolio of Private Education Loans. It services its own portfolio of education loans, as well as education loans owned by the United States Department of Education (ED), financial institutions and nonprofit education lenders. It also provides business processing services to education-related clients, such as guaranty agencies and colleges and universities. It provides additional business processing services to a range of other clients, including federal agencies, state and local governments, healthcare systems and other healthcare providers and municipalities.

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