Nelnet, Inc. (NNI) vs OneMain Holdings, Inc. (OMF)

Nelnet, Inc. and OneMain Holdings, Inc. are both Credit Services companies. OneMain Holdings, Inc. is the larger, with a market value of $6.5B against $4.5B — 1.5× the size. OneMain Holdings, Inc. trades at the lower P/E: 8.6× against 14.9×. OneMain Holdings, Inc. grew revenue faster over the last twelve months: 7.04% against −6.25%. Nelnet, Inc. has the higher net margin (14.4% vs 12.3%) and the higher return on invested capital (3.14% vs 2.45%). Both pay a dividend; OneMain Holdings, Inc. yields more (9.13% vs 1.20%). Across the 20 metrics below, OneMain Holdings, Inc. leads on 11 and Nelnet, Inc. on 9.

Valuation

Metric NNI OMF Credit Services median
P/E 14.87 8.64 9.64
P/S 2.13 1.04 0.87
P/B 1.23 1.96 1.16
Price to free cash flow 15.36 2.04 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales 3.75 4.52 2.32
Earnings yield 6.72% 11.58% 6.72%
Free cash flow yield 6.51% 49.09% 12.33%

Profitability

Metric NNI OMF Credit Services median
Gross margin 78.28% 79.74% 77.13%
Operating margin 0.00% 0.00% 0.34%
Net margin 14.35% 12.26% 9.25%
Free cash flow margin 13.85% 50.72% 13.03%
Return on equity 8.49% 23.28% 8.49%
Return on assets 2.16% 2.89% 2.29%
Return on invested capital 3.14% 2.45% 4.09%

Growth

Metric NNI OMF Credit Services median
Revenue growth (TTM) (6.25%) 7.04% 4.62%
EPS growth (last fiscal year) 134.86% 54.72% —
Revenue growth, 5-year CAGR 5.45% 4.76% 9.13%
Net income growth, 5-year CAGR 3.98% 1.41% 0.00%

Health

Metric NNI OMF Credit Services median
Debt to equity 1.94 6.73 0.68
Current ratio 836.59 0.00 1.55
Net debt to EBITDA 0.00 0.00 0.13

Dividend

Metric NNI OMF Credit Services median
Dividend yield 1.20% 9.13% 3.34%
Payout ratio 0.20 0.73 0.00

Size

Metric NNI OMF Credit Services median
Market cap 4.47b 6.52b 872.19m

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