Head-To-Head Review: Navient Corp (NAVIV) & PHH Corp (PHH)

Navient Corp (NASDAQ: NAVIV) and PHH Corp (NYSE:PHH) are both consumer lending – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares Navient Corp and PHH Corp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Navient Corp N/A N/A N/A $1.82 6.71
PHH Corp $622.00 million 1.04 -$202.00 million ($5.10) -2.47

Navient Corp has higher revenue, but lower earnings than PHH Corp. PHH Corp is trading at a lower price-to-earnings ratio than Navient Corp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Navient Corp and PHH Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navient Corp 0 0 0 0 N/A
PHH Corp 0 2 1 0 2.33

PHH Corp has a consensus target price of $15.83, indicating a potential upside of 25.46%. Given PHH Corp’s higher probable upside, analysts plainly believe PHH Corp is more favorable than Navient Corp.

Profitability

This table compares Navient Corp and PHH Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navient Corp 31.91% 12.50% 0.38%
PHH Corp -55.15% -20.67% -7.37%

Insider & Institutional Ownership

97.8% of PHH Corp shares are held by institutional investors. 2.5% of PHH Corp shares are held by company 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.

Risk & Volatility

Navient Corp has a beta of 2.35, suggesting that its stock price is 135% more volatile than the S&P 500. Comparatively, PHH Corp has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.

About Navient Corp

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.

About PHH Corp

PHH Corporation is a standalone mortgage company. The Company provides outsourced mortgage banking services to a range of clients, including financial institutions and real estate brokers throughout the United States, and is focused on originating, selling, servicing and subservicing residential mortgage loans through its subsidiary, PHH Mortgage Corporation and its subsidiaries. It operates through two segments: Mortgage Production and Mortgage Servicing. The Mortgage Production segment provides mortgage loan origination services and sells mortgage loans. The Mortgage Servicing segment performs servicing activities for loans originated by the Company and mortgage servicing rights purchased from others, and acts as a subservicer for certain clients that own the underlying mortgage servicing rights. The Mortgage Production segment provides private label mortgage services to financial institutions and real estate brokers, and sources mortgage loans through its retail platform.

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