Critical Analysis: SLM Corporation (SLM) versus JG Wentworth (JGW)

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

Valuation & Earnings

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

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

SLM Corporation has higher revenue and earnings than JG Wentworth.

Profitability

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

Net Margins Return on Equity Return on Assets
JG Wentworth -12.80% N/A -0.78%
SLM Corporation 22.81% 16.31% 1.58%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for JG Wentworth and SLM Corporation, as provided by MarketBeat.com.

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

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

Institutional & Insider Ownership

99.2% of SLM Corporation shares are held by institutional investors. 0.6% of SLM Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

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

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.

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.

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