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

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 28.3% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Nelnet and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nelnet $861.56 million N/A 9.53
Nelnet Competitors $1.10 billion $177.92 million 23.17

Nelnet’s competitors have higher revenue and earnings than Nelnet. Nelnet is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

40.8% of Nelnet shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Business Support Services” companies are owned by institutional investors. 45.4% of Nelnet shares are owned by insiders. Comparatively, 12.7% of shares of all “Business Support Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nelnet and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nelnet 0 1 1 0 2.50
Nelnet Competitors 624 1855 2602 62 2.41

Nelnet currently has a consensus target price of $53.50, indicating a potential downside of 8.87%. As a group, “Business Support Services” companies have a potential downside of 5.28%. Given Nelnet’s competitors higher probable upside, analysts plainly believe Nelnet has less favorable growth aspects than its competitors.

Profitability

This table compares Nelnet and its competitors’ 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 -53.57% -160.85% 0.22%

Volatility & Risk

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

Summary

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

Nelnet Company Profile

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.

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