Enova International (ENVA) and SLM Corporation (SLM) Head-To-Head Comparison

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

Analyst Ratings

This is a summary of current recommendations for Enova International and SLM Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enova International 0 1 3 0 2.75
SLM Corporation 1 1 6 0 2.63

Enova International presently has a consensus target price of $16.67, suggesting a potential upside of 12.23%. SLM Corporation has a consensus target price of $13.50, suggesting a potential upside of 27.36%. Given SLM Corporation’s higher probable upside, analysts clearly believe SLM Corporation is more favorable than Enova International.

Profitability

This table compares Enova International and SLM Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enova International 3.87% 14.85% 3.80%
SLM Corporation 22.95% 16.63% 1.62%

Insider & Institutional Ownership

93.3% of Enova International shares are held by institutional investors. Comparatively, 96.8% of SLM Corporation shares are held by institutional investors. 4.5% of Enova International shares are held by company insiders. Comparatively, 0.6% of SLM Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Enova International and SLM Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Enova International $745.57 million 0.67 $34.60 million $0.92 16.14
SLM Corporation $1.15 billion 3.99 $250.32 million $0.67 15.82

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.

Volatility & Risk

Enova International has a beta of 3.5, indicating that its share price is 250% more volatile than the S&P 500. Comparatively, SLM Corporation has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Summary

SLM Corporation beats Enova International on 9 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 Corporation 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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