SLM Corporation (NASDAQ: SLM) and Enova International (NYSE:ENVA) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Earnings and Valuation

This table compares SLM Corporation and Enova International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
SLM Corporation $1.15 billion 3.82 $250.32 million $0.67 15.13
Enova International $745.57 million 0.64 $34.60 million $0.92 15.38

SLM Corporation has higher revenue and earnings than Enova International. SLM Corporation is trading at a lower price-to-earnings ratio than Enova International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

SLM Corporation has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Enova International has a beta of 3.5, meaning that its share price is 250% more volatile than the S&P 500.

Institutional & Insider Ownership

97.5% of SLM Corporation shares are held by institutional investors. Comparatively, 93.1% of Enova International shares are held by institutional investors. 0.6% of SLM Corporation shares are held by company insiders. Comparatively, 4.5% of Enova International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for SLM Corporation and Enova International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SLM Corporation 1 1 6 0 2.63
Enova International 0 1 3 0 2.75

SLM Corporation presently has a consensus price target of $13.50, suggesting a potential upside of 33.14%. Enova International has a consensus price target of $16.67, suggesting a potential upside of 17.79%. Given SLM Corporation’s higher probable upside, equities research analysts clearly believe SLM Corporation is more favorable than Enova International.

Profitability

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

Net Margins Return on Equity Return on Assets
SLM Corporation 22.95% 16.63% 1.62%
Enova International 3.87% 14.85% 3.80%

Summary

SLM Corporation beats Enova International on 9 of the 14 factors compared between the two stocks.

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.

About Enova International

Enova International, Inc. is a technology and analytics company. The Company provides online financial services. As of December 31, 2016, the Company offered or arranged loans to consumers in 33 states in the United States and in the United Kingdom and Brazil. As of December 31, 2016, it also offered financing to small businesses in all 50 states and Washington D.C. in the United States. The Company provides online financial services to non-prime credit consumers and small businesses in the United States, United Kingdom, and Brazil. Its customers include small businesses, which have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. The Company’s financing products include short-term loans, line of credit accounts, installment loans and receivables purchase agreements (RPAs).

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