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

Insider and Institutional 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 insiders. Comparatively, 4.5% of Enova International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for SLM Corporation and Enova International, as reported 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 target price of $13.50, suggesting a potential upside of 37.20%. Enova International has a consensus target price of $16.67, suggesting a potential upside of 22.10%. Given SLM Corporation’s higher probable upside, equities analysts clearly believe SLM Corporation is more favorable than Enova International.

Valuation & Earnings

This table compares SLM Corporation and Enova International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
SLM Corporation $1.15 billion 3.71 $250.32 million $0.67 14.69
Enova International $745.57 million 0.61 $34.60 million $0.91 15.00

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 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Enova International has a beta of 3.34, meaning that its stock price is 234% more volatile than the S&P 500.

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.

SLM Corporation Company Profile

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.

Enova International Company Profile

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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