Financial Analysis: Navient Corporation (NAVI) versus Its Peers
Navient Corporation (NASDAQ: NAVI) is one of 27 public companies in the “Consumer Lending” industry, but how does it compare to its competitors? We will compare Navient Corporation to similar businesses based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.
This is a summary of current recommendations and price targets for Navient Corporation and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Navient Corporation Competitors||165||663||1050||51||2.51|
Navient Corporation currently has a consensus target price of $18.27, indicating a potential upside of 47.84%. As a group, “Consumer Lending” companies have a potential upside of 32.95%. Given Navient Corporation’s higher probable upside, research analysts clearly believe Navient Corporation is more favorable than its competitors.
This table compares Navient Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Navient Corporation Competitors||-28.46%||-17.36%||0.54%|
Navient Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 5.2%. Navient Corporation pays out 35.4% of its earnings in the form of a dividend. As a group, “Consumer Lending” companies pay a dividend yield of 1.6% and pay out 25.9% of their earnings in the form of a dividend.
Valuation and Earnings
This table compares Navient Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Navient Corporation||$1.81 billion||N/A||6.83|
|Navient Corporation Competitors||$564.84 million||$92.07 million||16.17|
Navient Corporation has higher revenue, but lower earnings than its competitors. Navient Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
93.0% of Navient Corporation shares are held by institutional investors. Comparatively, 77.6% of shares of all “Consumer Lending” companies are held by institutional investors. 1.7% of Navient Corporation shares are held by insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Navient Corporation has a beta of 2.48, indicating that its share price is 148% more volatile than the S&P 500. Comparatively, Navient Corporation’s competitors have a beta of 1.49, indicating that their average share price is 49% more volatile than the S&P 500.
About Navient Corporation
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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