Enova International (NYSE: ENVA) and SLM (NASDAQ:SLM) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
97.3% of Enova International shares are held by institutional investors. Comparatively, 99.3% of SLM shares are held by institutional investors. 1.6% of Enova International shares are held by company insiders. Comparatively, 0.6% of SLM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent ratings and price targets for Enova International and SLM, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Enova International presently has a consensus target price of $16.67, suggesting a potential upside of 5.82%. SLM has a consensus target price of $13.50, suggesting a potential upside of 16.48%. Given SLM’s higher possible upside, analysts clearly believe SLM is more favorable than Enova International.
Earnings & Valuation
This table compares Enova International and SLM’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enova International||$745.57 million||0.71||$34.60 million||$0.92||17.12|
|SLM||$1.15 billion||4.37||$250.32 million||$0.67||17.30|
SLM has higher revenue and earnings than Enova International. Enova International is trading at a lower price-to-earnings ratio than SLM, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Enova International has a beta of 3.45, indicating that its share price is 245% more volatile than the S&P 500. Comparatively, SLM has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
This table compares Enova International and SLM’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
SLM beats Enova International on 10 of the 14 factors compared between the two stocks.
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).
SLM 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.
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