LendingTree (NASDAQ: TREE) and Navient Corp (NASDAQ:NAVIV) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Institutional and Insider Ownership

71.7% of LendingTree shares are held by institutional investors. 21.9% of LendingTree shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for LendingTree and Navient Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingTree 0 0 12 0 3.00
Navient Corp 0 0 0 0 N/A

LendingTree presently has a consensus price target of $188.91, indicating a potential downside of 18.42%. Given LendingTree’s higher probable upside, equities research analysts plainly believe LendingTree is more favorable than Navient Corp.

Profitability

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

Net Margins Return on Equity Return on Assets
LendingTree 5.85% 17.01% 10.47%
Navient Corp 31.91% 12.50% 0.38%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LendingTree $480.69 million 5.78 $73.26 million $2.14 108.20
Navient Corp N/A N/A N/A N/A N/A

LendingTree has higher revenue and earnings than Navient Corp.

Summary

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

LendingTree Company Profile

LendingTree, Inc. (LendingTree) is engaged in operating an online loan marketplace for consumers seeking loans and other credit-based offerings. The Company’s online marketplace provides consumers with access to product offerings from various lenders, which it refers to as Network Lenders, including mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, personal loans, student loans, small business loans and other related offerings. In addition, the Company offers tools and resources, including free credit scores that facilitate comparison shopping for these loans and other credit-based offerings. The Company offers its products in categories, including mortgage products and non-mortgage products. Its mortgage products category includes its purchase and refinance products. Its non-mortgage products include lending products and other products.

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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