Jefferson Capital, Inc. (JCAP) vs Navient Corporation (NAVI)

Jefferson Capital, Inc. and Navient Corporation are both Credit Services companies. Jefferson Capital, Inc. is the larger, with a market value of $1.1B against $872.2M — 1.3× the size. Navient Corporation has negative trailing earnings, so its P/E is not meaningful; Jefferson Capital, Inc. trades at 7.9×. Jefferson Capital, Inc. grew revenue faster over the last twelve months: 26.4% against −21.4%. Jefferson Capital, Inc. has the higher net margin (20.1% vs −1.67%) and the higher return on invested capital (42.0% vs −0.11%). Across the 17 metrics below, Jefferson Capital, Inc. leads on 12 and Navient Corporation on 5.

Valuation

Metric JCAP NAVI Credit Services median
P/E 7.90 n/m 9.64
P/S 1.63 0.29 0.87
P/B 2.26 0.36 1.16
Price to free cash flow 4.89 2.52 2.99
EV/EBITDA 3.34 n/m 9.58
EV/Sales 1.59 12.99 2.32
Earnings yield 12.66% (5.37%) 6.72%
Free cash flow yield 20.45% 39.66% 12.33%

Profitability

Metric JCAP NAVI Credit Services median
Gross margin 64.54% 20.06% 77.13%
Operating margin 45.82% 0.00% 0.34%
Net margin 20.06% (1.67%) 9.25%
Free cash flow margin 33.30% 11.37% 13.03%
Return on equity 29.83% (2.02%) 8.49%
Return on assets 6.87% (0.10%) 2.29%
Return on invested capital 41.96% (0.11%) 4.09%

Growth

Metric JCAP NAVI Credit Services median
Revenue growth (TTM) 26.35% (21.43%) 4.62%
EPS growth (last fiscal year) — (168.64%) —
Revenue growth, 5-year CAGR — (3.01%) 9.13%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric JCAP NAVI Credit Services median
Debt to equity 0.00 16.73 0.68
Current ratio 0.03 10.53 1.55
Net debt to EBITDA (0.14) 0.00 0.13

Dividend

Metric JCAP NAVI Credit Services median
Dividend yield — 3.97% 3.34%
Payout ratio — 0.21 0.00

Size

Metric JCAP NAVI Credit Services median
Market cap 1.12b 872.19m 872.19m

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