Nelnet (NYSE: NNI) and National Research (NASDAQ:NRCIA) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Valuation and Earnings
This table compares Nelnet and National Research’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nelnet||$1.24 billion||1.77||$256.75 million||$5.25||10.27|
|National Research||$109.38 million||8.54||$20.51 million||$0.88||43.35|
Risk & Volatility
Nelnet has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, National Research has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.
Institutional and Insider Ownership
39.7% of Nelnet shares are owned by institutional investors. Comparatively, 25.1% of National Research shares are owned by institutional investors. 46.1% of Nelnet shares are owned by company insiders. Comparatively, 37.5% of National Research shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Nelnet pays an annual dividend of $0.64 per share and has a dividend yield of 1.2%. National Research pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Nelnet pays out 12.2% of its earnings in the form of a dividend. National Research pays out 45.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nelnet has increased its dividend for 2 consecutive years. Nelnet is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Nelnet and National Research’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Nelnet and National Research, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nelnet presently has a consensus target price of $53.50, suggesting a potential downside of 0.82%. National Research has a consensus target price of $44.00, suggesting a potential upside of 15.33%. Given National Research’s higher probable upside, analysts plainly believe National Research is more favorable than Nelnet.
Nelnet beats National Research on 10 of the 17 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.
National Research Company Profile
National Research Corporation, doing business as NRC Health, is a provider of analytics and insights for healthcare providers, payers and other healthcare organizations. The Company operates through six segments: Experience, The Governance Institute, Market Insights, Transparency, National Research Corporation Canada and Connect. The Company’s portfolio of subscription-based solutions provides information and analysis to healthcare organizations and payers across a range of constituent-related elements, including patient experience and satisfaction, community population health risks, workforce engagement, community perceptions and physician engagement. NRC Health partners with clients across the range of healthcare services. The Company’s clients range from integrated health systems and post-acute providers, such as home health, long-term care and hospice, to payer organizations. NRC Health’s portfolio of solutions is designed to help healthcare companies.
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