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

Risk and Volatility

SLM Corporation has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Enova International has a beta of 3.34, suggesting 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%

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 3.92 $250.32 million $0.67 15.54
Enova International $745.57 million 0.67 $34.60 million $0.91 16.37

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.

Analyst Ratings

This is a summary of current ratings and target prices 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 price target of $13.50, indicating a potential upside of 29.67%. Enova International has a consensus price target of $16.67, indicating a potential upside of 11.86%. Given SLM Corporation’s higher probable upside, equities research analysts plainly believe SLM Corporation is more favorable than Enova International.

Insider & Institutional Ownership

98.6% of SLM Corporation shares are held by institutional investors. Comparatively, 95.8% 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 is poised for long-term growth.

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).

Receive News & Ratings for SLM Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SLM Corporation and related companies with Analyst Ratings Network's FREE daily email newsletter.