Nelnet (NYSE: NNI) and CBIZ (NYSE:CBZ) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Volatility and Risk

Nelnet has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Nelnet and CBIZ, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nelnet 0 2 0 0 2.00
CBIZ 0 0 0 0 N/A

Nelnet presently has a consensus price target of $50.00, indicating a potential upside of 1.11%. Given Nelnet’s higher probable upside, equities research analysts clearly believe Nelnet is more favorable than CBIZ.

Dividends

Nelnet pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. CBIZ does not pay a dividend. Nelnet pays out 9.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

40.9% of Nelnet shares are owned by institutional investors. Comparatively, 85.6% of CBIZ shares are owned by institutional investors. 45.4% of Nelnet shares are owned by insiders. Comparatively, 6.9% of CBIZ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Nelnet and CBIZ’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nelnet $861.56 million 1.73 $185.19 million $6.16 8.03
CBIZ $831.05 million 1.05 $91.52 million $0.83 19.28

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

Profitability

This table compares Nelnet and CBIZ’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nelnet 20.19% 9.65% 0.75%
CBIZ 5.54% 9.42% 4.22%

Summary

Nelnet beats CBIZ on 10 of the 14 factors compared between the two stocks.

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.

CBIZ Company Profile

CBIZ, Inc. (CBIZ) is engaged in the professional services business. The Company operates its professional services business through acquiring and integrating accounting and financial service providers, group health benefits consulting firms, property and casualty brokerage firms, payroll service providers, and valuation and other service firms throughout the United States. Its segments include Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. The Financial Services group includes accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group includes group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices segment includes managed networking and hardware services, and healthcare consulting.

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