Nelnet (NYSE:NNI) & Gentera (OTCMKTS:CMPRF) Financial Analysis

Gentera (OTCMKTS:CMPRF) and Nelnet (NYSE:NNI) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Dividends

Gentera pays an annual dividend of $1.10 per share and has a dividend yield of 45.6%. Nelnet pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Gentera pays out 56.5% of its earnings in the form of a dividend. Nelnet pays out 11.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

25.2% of Gentera shares are owned by institutional investors. Comparatively, 33.5% of Nelnet shares are owned by institutional investors. 40.3% of Nelnet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Gentera and Nelnet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentera	N/A	N/A	N/A
Nelnet	18.45%	11.73%	2.99%

Valuation & Earnings

This table compares Gentera and Nelnet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentera	N/A	N/A	N/A	$1.95	1.24
Nelnet	$2.26 billion	2.19	$428.47 million	$11.48	12.00

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Gentera and Nelnet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentera	0	0	1	0	3.00
Nelnet	1	1	1	0	2.00

Nelnet has a consensus price target of $140.00, suggesting a potential upside of 1.61%. Given Nelnet’s higher possible upside, analysts clearly believe Nelnet is more favorable than Gentera.

Summary

Nelnet beats Gentera on 10 of the 12 factors compared between the two stocks.

About Gentera

Gentera, S. A. B. de C. V. provides various financial products and services in Mexico and Peru. The company offers individual and group credit, savings, insurance, and transactional channels services to entrepreneurs and microentrepreneurs. It also provides insurance agent services; and personal loans; as well as operates as a bank commission agent administrator that offers financial operations, payment of services, and cellphone top-ups services. The company was formerly known as Financiera Compartamos, S.A. B. de C. V. Gentera, S. A. B. de C. V. was founded in 1990 and is headquartered in Mexico City, Mexico.

About Nelnet

Nelnet, Inc. engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services. This segment also offers student loan servicing software; business process outsourcing services specialized in contact center management, such as inbound calls, outreach campaigns and sales, and interacting with customers through multi-channels, and processing and technology services. The Education Technology Services and Payments segment provides financial management services; school information system software; website design and cost-effective admissions software; FACTS Giving, a donation platform; and customized professional development and coaching services, educational instruction services, and technology products that aid in teacher and student evaluations. This segment also offers tuition payment plans, and service and technology for student billings, payments, and refunds; solutions for in-person, online, and mobile payment experiences on campus; payment processing services, such as credit card and electronic transfer; faith community, giving, and learning management services and technologies; and an integrated commerce payment platform, financial management, and tuition payment plan services, as well as a school management platform that provides administrative, information and financial management, and communication functions for K-12 schools. The Asset Generation and Management segment acquires, manages, and owns loan assets. The Nelnet Bank segment operates as an internet industrial bank. It also offers investment advisory, insurance, and reinsurance services, as well as engages in real estate investment business. The company was incorporated in 1977 and is headquartered in Lincoln, Nebraska.