Navient Corporation (NASDAQ: NAVI) is one of 27 public companies in the “Consumer Lending” industry, but how does it compare to its rivals? We will compare Navient Corporation to similar businesses based on the strength of its earnings, dividends, profitability, valuation, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for Navient Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navient Corporation 0 5 5 0 2.50
Navient Corporation Competitors 192 747 1068 58 2.48

Navient Corporation presently has a consensus price target of $18.45, suggesting a potential upside of 24.83%. As a group, “Consumer Lending” companies have a potential upside of 59.66%. Given Navient Corporation’s rivals higher possible upside, analysts clearly believe Navient Corporation has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

93.0% of Navient Corporation shares are owned by institutional investors. Comparatively, 77.5% of shares of all “Consumer Lending” companies are owned by institutional investors. 1.7% of Navient Corporation shares are owned by insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Navient Corporation has a beta of 2.44, indicating that its stock price is 144% more volatile than the S&P 500. Comparatively, Navient Corporation’s rivals have a beta of 1.48, indicating that their average stock price is 48% more volatile than the S&P 500.

Profitability

This table compares Navient Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navient Corporation 11.50% 14.05% 0.43%
Navient Corporation Competitors -28.26% -17.28% 0.63%

Dividends

Navient Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 4.3%. Navient Corporation pays out 33.7% of its earnings in the form of a dividend. As a group, “Consumer Lending” companies pay a dividend yield of 1.7% and pay out 25.6% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Navient Corporation and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Navient Corporation $1.91 billion N/A 7.78
Navient Corporation Competitors $564.84 million $92.07 million 16.62

Navient Corporation has higher revenue, but lower earnings than its rivals. Navient Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

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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