Comparing Navient Corporation (NAVI) & The Competition

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

Institutional and Insider Ownership



93.1% of Navient Corporation shares are held by institutional investors. Comparatively, 77.8% of shares of all “Consumer Lending” companies are held by institutional investors. 1.7% of Navient Corporation shares are held by company insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Navient Corporation 10.88% 14.09% 0.43%
Navient Corporation Competitors -28.49% -17.33% 0.55%

Risk and Volatility

Navient Corporation has a beta of 2.48, indicating that its share price is 148% more volatile than the S&P 500. Comparatively, Navient Corporation’s peers have a beta of 1.49, indicating that their average share price is 49% more volatile than the S&P 500.

Dividends

Navient Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 5.4%. Navient Corporation pays out 35.4% of its earnings in the form of a dividend. As a group, “Consumer Lending” companies pay a dividend yield of 1.6% and pay out 25.8% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Navient Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navient Corporation 0 6 5 0 2.45
Navient Corporation Competitors 167 674 1059 51 2.51

Navient Corporation currently has a consensus target price of $18.27, indicating a potential upside of 52.91%. As a group, “Consumer Lending” companies have a potential upside of 34.45%. Given Navient Corporation’s higher possible upside, equities analysts clearly believe Navient Corporation is more favorable than its peers.

Valuation & Earnings

This table compares Navient Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Navient Corporation $1.81 billion N/A 6.60
Navient Corporation Competitors $564.84 million $92.07 million 17.28

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

Navient Corporation Company Profile

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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