SLM Corporation (NASDAQ: SLM) and JG Wentworth (NYSE:JGW) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitabiliy.

Institutional & Insider Ownership

99.1% of SLM Corporation shares are held by institutional investors. 0.6% of SLM Corporation 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.

Earnings and Valuation

This table compares SLM Corporation and JG Wentworth’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SLM Corporation $891.46 million 5.30 $267.56 million $0.62 17.66
JG Wentworth N/A N/A N/A N/A N/A

SLM Corporation has higher revenue and earnings than JG Wentworth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for SLM Corporation and JG Wentworth, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SLM Corporation 1 1 5 1 2.75
JG Wentworth 0 0 0 0 N/A

SLM Corporation currently has a consensus price target of $12.44, suggesting a potential upside of 13.58%. Given SLM Corporation’s higher probable upside, equities analysts clearly believe SLM Corporation is more favorable than JG Wentworth.

Profitability

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

Net Margins Return on Equity Return on Assets
SLM Corporation 22.81% 16.31% 1.58%
JG Wentworth -12.80% N/A -0.78%

Summary

SLM Corporation beats JG Wentworth on 9 of the 9 factors compared between the two stocks.

About SLM Corporation

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.

About JG Wentworth

The J.G. Wentworth Company is a diversified financial services company. The Company focuses on providing solutions to consumers in need of cash. The Company conducts its operations through two segments: Structured Settlements and Annuity Purchasing (Structured Settlements), and Home Lending. The Structured Settlements segment provides liquidity to individuals with various financial assets, such as structured settlements, annuities, and lottery winnings, by either purchasing these financial assets for a lump-sum payment, issuing installment obligations payable over time, or serving as a broker to other purchasers of those financial assets. The Home Lending segment is primarily engaged in retail lending, originating primarily Federal Housing Administration (FHA), Veterans Administration (VA) and conventional loans. The Structured Settlements segment operates with various brands, including J.G. Wentworth and Peachtree.

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