NNI vs. CACC, SLM, ECPG, PRAA, WRLD, EZPW, GDOT, RM, NICK, and AXP
Should you be buying Nelnet stock or one of its competitors? The main competitors of Nelnet include Credit Acceptance (CACC), SLM (SLM), Encore Capital Group (ECPG), PRA Group (PRAA), World Acceptance (WRLD), EZCORP (EZPW), Green Dot (GDOT), Regional Management (RM), Nicholas Financial (NICK), and American Express (AXP). These companies are all part of the "consumer finance" industry.
Credit Acceptance (NASDAQ:CACC) and Nelnet (NYSE:NNI) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, media sentiment, earnings, community ranking and dividends.
Credit Acceptance has higher earnings, but lower revenue than Nelnet. Credit Acceptance is trading at a lower price-to-earnings ratio than Nelnet, indicating that it is currently the more affordable of the two stocks.
Credit Acceptance has a net margin of 12.83% compared to Credit Acceptance's net margin of 6.54%. Nelnet's return on equity of 30.70% beat Credit Acceptance's return on equity.
Credit Acceptance presently has a consensus price target of $402.33, suggesting a potential downside of 18.03%. Nelnet has a consensus price target of $96.00, suggesting a potential downside of 7.39%. Given Credit Acceptance's stronger consensus rating and higher probable upside, analysts clearly believe Nelnet is more favorable than Credit Acceptance.
81.7% of Credit Acceptance shares are held by institutional investors. Comparatively, 33.5% of Nelnet shares are held by institutional investors. 5.3% of Credit Acceptance shares are held by company insiders. Comparatively, 50.1% of Nelnet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Credit Acceptance has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Nelnet has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
Credit Acceptance received 69 more outperform votes than Nelnet when rated by MarketBeat users. However, 66.84% of users gave Nelnet an outperform vote while only 51.31% of users gave Credit Acceptance an outperform vote.
In the previous week, Credit Acceptance had 2 more articles in the media than Nelnet. MarketBeat recorded 4 mentions for Credit Acceptance and 2 mentions for Nelnet. Nelnet's average media sentiment score of 1.77 beat Credit Acceptance's score of 0.55 indicating that Credit Acceptance is being referred to more favorably in the media.
Summary
Credit Acceptance beats Nelnet on 11 of the 17 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NNI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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