OneMain Holdings (OMF) vs. Navient Corporation (NAVI) Head to Head Contrast

OneMain Holdings (NYSE: OMF) and Navient Corporation (NASDAQ:NAVI) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Dividends

Navient Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 4.7%. OneMain Holdings does not pay a dividend. Navient Corporation pays out 33.7% of its earnings in the form of a dividend.

Risk and Volatility

OneMain Holdings has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500. Comparatively, Navient Corporation has a beta of 2.43, indicating that its share price is 143% more volatile than the S&P 500.

Earnings and Valuation

This table compares OneMain Holdings and Navient Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OneMain Holdings $1.84 billion 1.99 $127.18 million $0.94 28.82
Navient Corporation $1.91 billion 1.96 $520.79 million $1.90 7.20

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

Profitability

This table compares OneMain Holdings and Navient Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OneMain Holdings 3.63% 14.31% 2.42%
Navient Corporation 11.50% 14.05% 0.43%

Analyst Recommendations

This is a summary of recent recommendations and price targets for OneMain Holdings and Navient Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OneMain Holdings 0 9 7 0 2.44
Navient Corporation 0 6 3 0 2.33

OneMain Holdings presently has a consensus price target of $29.06, indicating a potential upside of 7.28%. Navient Corporation has a consensus price target of $18.83, indicating a potential upside of 37.67%. Given Navient Corporation’s higher probable upside, analysts plainly believe Navient Corporation is more favorable than OneMain Holdings.

Institutional and Insider Ownership

95.3% of OneMain Holdings shares are owned by institutional investors. Comparatively, 95.5% of Navient Corporation shares are owned by institutional investors. 57.7% of OneMain Holdings shares are owned by company insiders. Comparatively, 1.7% of Navient Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

OneMain Holdings beats Navient Corporation on 9 of the 16 factors compared between the two stocks.

About OneMain Holdings

OneMain Holdings, Inc. is a financial services holding company. The Company is a consumer finance company, which is engaged in providing personal loan products; credit and non-credit insurance, and service loans owned by it and service or subservice loans owned by third-parties. The Company’s segments include Consumer and Insurance; Acquisitions and Servicing; Real Estate, and Other. It is engaged in pursuing strategic acquisitions and dispositions of assets and businesses, including loan portfolios or other financial assets. The Company originates and services personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations. As of December 31, 2016, its combined branch operations included over 1,800 branch offices in 44 states. It offers optional credit insurance products to its customers, including credit life insurance, credit disability insurance, credit involuntary unemployment insurance and collateral protection insurance.

About Navient Corporation

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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