Comparing Katapult (NASDAQ:KPLT) and Nelnet (NYSE:NNI)

Nelnet (NYSE:NNI) and Katapult (NASDAQ:KPLT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Risk and Volatility

Nelnet has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Katapult has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Earnings and Valuation

This table compares Nelnet and Katapult”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nelnet	$2.26 billion	2.00	$428.47 million	$8.36	15.06
Katapult	$291.76 million	0.16	$1.37 million	$1.37	6.93

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nelnet	14.35%	8.26%	2.11%
Katapult	3.60%	-26.41%	10.86%

Analyst Recommendations

This is a summary of current recommendations and price targets for Nelnet and Katapult, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nelnet	1	2	0	0	1.67
Katapult	1	0	0	0	1.00

Nelnet currently has a consensus price target of $140.00, indicating a potential upside of 11.21%. Given Nelnet’s stronger consensus rating and higher probable upside, equities analysts clearly believe Nelnet is more favorable than Katapult.

Insider & Institutional Ownership

33.5% of Nelnet shares are held by institutional investors. Comparatively, 26.8% of Katapult shares are held by institutional investors. 40.3% of Nelnet shares are held by company insiders. Comparatively, 8.0% of Katapult shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Nelnet beats Katapult on 11 of the 13 factors compared between the two stocks.

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.

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.