Nelnet (NYSE:NNI) & Its Peers Critical Comparison

Nelnet (NYSE: NNI) is one of 99 publicly-traded companies in the “Business Support Services” industry, but how does it contrast to its rivals? We will compare Nelnet to similar businesses based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Dividends



Nelnet pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Nelnet pays out 9.1% of its earnings in the form of a dividend. As a group, “Business Support Services” companies pay a dividend yield of 1.1% and pay out 28.4% of their earnings in the form of a dividend.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Nelnet $861.56 million N/A 9.55
Nelnet Competitors $1.10 billion $177.93 million 23.49

Nelnet’s rivals have higher revenue and earnings than Nelnet. Nelnet 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.

Insider & Institutional Ownership

40.8% of Nelnet shares are held by institutional investors. Comparatively, 62.1% of shares of all “Business Support Services” companies are held by institutional investors. 45.4% of Nelnet shares are held by insiders. Comparatively, 12.6% of shares of all “Business Support Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Nelnet 20.19% 9.65% 0.75%
Nelnet Competitors -53.66% -169.89% 0.50%

Risk and Volatility

Nelnet has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Nelnet’s rivals have a beta of 1.13, indicating that their average share price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Nelnet and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nelnet 0 1 1 0 2.50
Nelnet Competitors 627 1860 2608 62 2.41

Nelnet currently has a consensus price target of $53.50, indicating a potential downside of 9.09%. As a group, “Business Support Services” companies have a potential downside of 6.99%. Given Nelnet’s rivals higher probable upside, analysts plainly believe Nelnet has less favorable growth aspects than its rivals.

Summary

Nelnet rivals beat Nelnet on 8 of the 14 factors compared.

About Nelnet

Nelnet, Inc. focuses on delivering education-related products and services and student loan asset management. The Company is engaged in student loan servicing, tuition payment processing and school information systems, and communications. The Company’s segments include Loan Systems and Servicing, Tuition Payment Processing and Campus Commerce, Communications, Asset Generation and Management, and Corporate and Other Activities. The Company earns fee-based revenue through its Loan Systems and Servicing, Tuition Payment Processing, and Communications operating segments. In addition, the Company earns interest income on its student loan portfolio in its Asset Generation and Management operating segment. Corporate and Other Activities include real estate and other investments. The Company, through Allo Communications LLC, is engaged in the sale of advanced telecommunication services, including Internet, broadband, telephone, and television services.

Receive News & Ratings for Nelnet Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nelnet Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply