Financial Analysis: Nelnet (NNI) versus Mr. Amazing Loans (MRAL)

Nelnet (NYSE:NNI) and Mr. Amazing Loans (OTC:MRAL) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

37.4% of Nelnet shares are held by institutional investors. Comparatively, 0.5% of Mr. Amazing Loans shares are held by institutional investors. 46.1% of Nelnet shares are held by insiders. Comparatively, 39.5% of Mr. Amazing Loans shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Nelnet and Mr. Amazing Loans, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nelnet 0 0 0 0 N/A
Mr. Amazing Loans 0 1 0 0 2.00

Mr. Amazing Loans has a consensus target price of $0.31, suggesting a potential upside of 55.00%. Given Mr. Amazing Loans’ higher possible upside, analysts clearly believe Mr. Amazing Loans is more favorable than Nelnet.

Dividends

Nelnet pays an annual dividend of $0.64 per share and has a dividend yield of 1.2%. Mr. Amazing Loans does not pay a dividend. Nelnet has raised its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Nelnet and Mr. Amazing Loans’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nelnet $1.20 billion 1.74 $173.16 million N/A N/A
Mr. Amazing Loans $1.69 million 2.07 -$5.50 million N/A N/A

Nelnet has higher revenue and earnings than Mr. Amazing Loans.

Risk & Volatility

Nelnet has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Mr. Amazing Loans has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares Nelnet and Mr. Amazing Loans’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nelnet 17.02% 9.45% 0.85%
Mr. Amazing Loans -360.20% -102.25% -99.34%

Summary

Nelnet beats Mr. Amazing Loans on 9 of the 12 factors compared between the two stocks.

Nelnet Company Profile

Nelnet, Inc. provides education related products and services, and loan asset management services worldwide. The company's Loan Systems and Servicing segment is involved in loan servicing activities, such as loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing activities for student loan portfolio and third-party clients. This segment also provides software and data center, default aversion tracking, claim processing, and post-default collection services, as well as borrower and loan updates for guarantee agencies, and contact center solutions; and licenses student loan servicing software to third-party student loan holders and servicers. Its Tuition Payment Processing and Campus Commerce segment offers products and services to help students and families to manage the payment of education costs; school information system software; professional development and educational instruction services to K-12 schools; and education-focused technologies, services, and support solutions to schools for collecting and processing commerce data. It also provides electronic transfer and credit card processing, reporting, billing and invoicing, and integration services; and mobile and virtual terminal solutions for business software products. Its Communications segment provides Internet access, data connectivity, Internet protocol television video, video on demand, and high-definition television services; digital video recorders to residential and business subscribers; and local calling and long-distance telephone services. This segment offers its services through direct marketing, call and communication centers, and sales representatives; and its Website. Its Asset Generation and Management segment acquires, manages, and owns loan assets. It also provides investment advisory services. The company was founded in 1978 and is headquartered in Lincoln, Nebraska.

Mr. Amazing Loans Company Profile

Mr. Amazing Loans Corporation, a consumer finance company, provides unsecured online consumer loans to individuals in the United States. It offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 20 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, Virginia, and Wisconsin. The company was formerly known as IEG Holdings Corporation. Mr. Amazing Loans Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.

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