TPG RE Finance Trust (NYSE: TRTX) and Navient (NASDAQ:NAVI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Dividends

TPG RE Finance Trust pays an annual dividend of $0.33 per share and has a dividend yield of 1.7%. Navient pays an annual dividend of $0.64 per share and has a dividend yield of 5.1%. Navient pays out 35.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares TPG RE Finance Trust and Navient’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TPG RE Finance Trust $92.39 million 12.38 $69.96 million N/A N/A
Navient $4.97 billion 0.67 $681.00 million $1.81 6.97

Navient has higher revenue and earnings than TPG RE Finance Trust.

Profitability

This table compares TPG RE Finance Trust and Navient’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TPG RE Finance Trust N/A N/A N/A
Navient 10.88% 14.09% 0.43%

Analyst Ratings

This is a breakdown of current recommendations and price targets for TPG RE Finance Trust and Navient, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TPG RE Finance Trust 0 2 3 0 2.60
Navient 0 6 5 0 2.45

TPG RE Finance Trust presently has a consensus price target of $21.20, suggesting a potential upside of 10.47%. Navient has a consensus price target of $18.00, suggesting a potential upside of 42.74%. Given Navient’s higher probable upside, analysts plainly believe Navient is more favorable than TPG RE Finance Trust.

Institutional and Insider Ownership

26.4% of TPG RE Finance Trust shares are owned by institutional investors. Comparatively, 92.9% of Navient shares are owned by institutional investors. 1.7% of Navient shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Navient beats TPG RE Finance Trust on 10 of the 13 factors compared between the two stocks.

TPG RE Finance Trust Company Profile

TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.

Navient Company Profile

Navient Corporation provides asset management and business processing services to education, healthcare and government clients at the federal, state and local levels. The Company holds the portfolio of education loans insured or federally guaranteed under the Federal Family Education Loan Program (FFELP). It operates through four segments: FFELP Loans, Private Education Loans, Business Services and Other. It also holds the portfolio of Private Education Loans. It services its own portfolio of education loans, as well as education loans owned by the United States Department of Education (ED), financial institutions and nonprofit education lenders. It also provides business processing services to education-related clients, such as guaranty agencies and colleges and universities. It provides additional business processing services to a range of other clients, including federal agencies, state and local governments, healthcare systems and other healthcare providers and municipalities.

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