JG Wentworth (NYSE: JGW) and SLM Corporation (NASDAQ:SLM) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

98.4% of SLM Corporation shares are owned by institutional investors. 0.6% of SLM Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares JG Wentworth and SLM Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JG Wentworth -12.80% N/A -0.78%
SLM Corporation 22.81% 16.31% 1.58%

Earnings and Valuation

This table compares JG Wentworth and SLM Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
JG Wentworth N/A N/A N/A N/A N/A
SLM Corporation $891.46 million 5.10 $267.56 million $0.62 16.98

SLM Corporation has higher revenue and earnings than JG Wentworth.

Analyst Recommendations

This is a breakdown of recent recommendations for JG Wentworth and SLM Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JG Wentworth 0 0 0 0 N/A
SLM Corporation 1 1 5 0 2.57

SLM Corporation has a consensus price target of $12.93, suggesting a potential upside of 22.78%. Given SLM Corporation’s higher possible upside, analysts clearly believe SLM Corporation is more favorable than JG Wentworth.

Summary

SLM Corporation beats JG Wentworth on 8 of the 8 factors compared between the two stocks.

About JG Wentworth

The J.G. Wentworth Company is a diversified financial services company. The Company focuses on providing solutions to consumers in need of cash. The Company conducts its operations through two segments: Structured Settlements and Annuity Purchasing (Structured Settlements), and Home Lending. The Structured Settlements segment provides liquidity to individuals with various financial assets, such as structured settlements, annuities, and lottery winnings, by either purchasing these financial assets for a lump-sum payment, issuing installment obligations payable over time, or serving as a broker to other purchasers of those financial assets. The Home Lending segment is primarily engaged in retail lending, originating primarily Federal Housing Administration (FHA), Veterans Administration (VA) and conventional loans. The Structured Settlements segment operates with various brands, including J.G. Wentworth and Peachtree.

About SLM Corporation

SLM Corporation (Sallie Mae) is the nation’s saving, planning, and paying for college company. Sallie Mae offers products, which promote personal finance including private education loans, Upromise rewards, scholarship search, college financial planning tools, insurance, and online retail banking.

Receive News & Stock Ratings for JG Wentworth Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for JG Wentworth Co and related stocks with our FREE daily email newsletter.