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

Institutional and Insider Ownership

95.8% of Enova International shares are held by institutional investors. Comparatively, 98.6% of SLM Corporation shares are held by institutional investors. 1.6% of Enova International shares are held by company insiders. Comparatively, 0.6% of SLM Corporation shares are held by company 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 Enova International and SLM Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Enova International $745.57 million 0.64 $34.60 million $0.92 15.38
SLM Corporation $1.15 billion 3.82 $250.32 million C$0.67 15.13

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

Risk and Volatility

Enova International has a beta of 3.5, meaning that its stock price is 250% more volatile than the S&P 500. Comparatively, SLM Corporation has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Enova International 3.87% 14.85% 3.80%
SLM Corporation 22.95% 16.63% 1.62%

Analyst Recommendations

This is a summary of recent ratings for Enova International and SLM Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enova International 0 1 3 0 2.75
SLM Corporation 1 1 6 0 2.63

Enova International currently has a consensus price target of $16.67, indicating a potential upside of 17.79%. SLM Corporation has a consensus price target of C$13.50, indicating a potential upside of 33.14%. Given SLM Corporation’s higher probable upside, analysts plainly believe SLM Corporation is more favorable than Enova International.

Summary

SLM Corporation beats Enova International on 9 of the 14 factors compared between the two stocks.

Enova International Company Profile

Enova International, Inc. is a technology and analytics company. The Company provides online financial services. As of December 31, 2016, the Company offered or arranged loans to consumers in 33 states in the United States and in the United Kingdom and Brazil. As of December 31, 2016, it also offered financing to small businesses in all 50 states and Washington D.C. in the United States. The Company provides online financial services to non-prime credit consumers and small businesses in the United States, United Kingdom, and Brazil. Its customers include small businesses, which have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. The Company’s financing products include short-term loans, line of credit accounts, installment loans and receivables purchase agreements (RPAs).

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