Klarna Group plc (KLAR) vs Nelnet, Inc. (NNI)

Klarna Group plc and Nelnet, Inc. are both Credit Services companies. Klarna Group plc and Nelnet, Inc. are of similar size ($4.9B and $4.5B). Klarna Group plc has negative trailing earnings, so its P/E is not meaningful; Nelnet, Inc. trades at 14.9×. Klarna Group plc grew revenue faster over the last twelve months: 34.2% against −6.25%. Nelnet, Inc. has the higher net margin (14.4% vs −3.52%) and the higher return on invested capital (3.14% vs 0.00%). Across the 17 metrics below, Nelnet, Inc. leads on 13 and Klarna Group plc on 4.

Valuation

Metric KLAR NNI Credit Services median
P/E n/m 14.87 9.64
P/S 1.20 2.13 0.87
P/B 1.82 1.23 1.16
Price to free cash flow n/m 15.36 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales (0.10) 3.75 2.32
Earnings yield (2.89%) 6.72% 6.72%
Free cash flow yield (78.64%) 6.51% 12.33%

Profitability

Metric KLAR NNI Credit Services median
Gross margin 58.18% 78.28% 77.13%
Operating margin (1.21%) 0.00% 0.34%
Net margin (3.52%) 14.35% 9.25%
Free cash flow margin (94.31%) 13.85% 13.03%
Return on equity (5.67%) 8.49% 8.49%
Return on assets (0.77%) 2.16% 2.29%
Return on invested capital 0.00% 3.14% 4.09%

Growth

Metric KLAR NNI Credit Services median
Revenue growth (TTM) 34.19% (6.25%) 4.62%
EPS growth (last fiscal year) (8,000.00%) 134.86% —
Revenue growth, 5-year CAGR — 5.45% 9.13%
Net income growth, 5-year CAGR — 3.98% 0.00%

Health

Metric KLAR NNI Credit Services median
Debt to equity 0.00 1.94 0.68
Current ratio 1.08 836.59 1.55
Net debt to EBITDA 51.16 0.00 0.13

Dividend

Metric KLAR NNI Credit Services median
Dividend yield — 1.20% 3.34%
Payout ratio — 0.20 0.00

Size

Metric KLAR NNI Credit Services median
Market cap 4.86b 4.47b 872.19m

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