Reviewing SLM Corporation (SLM) and JG Wentworth (NYSE:JGW)

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SLM Corporation $891.46 million 5.00 $267.56 million $0.62 16.66
JG Wentworth N/A N/A N/A N/A N/A

SLM Corporation has higher revenue and earnings than JG Wentworth.

Institutional and Insider Ownership

99.1% of SLM Corporation shares are owned by institutional investors. 0.6% of SLM Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

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%

Analyst Ratings

This is a summary of recent ratings and price targets for SLM Corporation and JG Wentworth, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SLM Corporation 1 1 5 0 2.57
JG Wentworth 0 0 0 0 N/A

SLM Corporation presently has a consensus target price of $12.93, suggesting a potential upside of 25.16%. Given SLM Corporation’s higher possible upside, equities research analysts plainly believe SLM Corporation is more favorable than JG Wentworth.

Summary

SLM Corporation beats JG Wentworth on 8 of the 8 factors compared between the two stocks.

SLM Corporation Company Profile

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.

JG Wentworth Company Profile

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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