Contrasting Nelnet (NYSE:NNI) and Intrum AB (publ) (OTCMKTS:ITJTY)

Intrum AB (publ) (OTCMKTS:ITJTY) and Nelnet (NYSE:NNI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Intrum AB (publ) and Nelnet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intrum AB (publ)	0	0	0	0	0.00
Nelnet	1	2	0	0	1.67

Nelnet has a consensus price target of $140.00, indicating a potential upside of 10.13%. Given Nelnet’s stronger consensus rating and higher possible upside, analysts plainly believe Nelnet is more favorable than Intrum AB (publ).

Earnings and Valuation

This table compares Intrum AB (publ) and Nelnet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intrum AB (publ)	N/A	N/A	N/A	$12.65	0.02
Nelnet	$1.44 billion	3.17	$428.47 million	$8.36	15.21

Nelnet has higher revenue and earnings than Intrum AB (publ). Intrum AB (publ) is trading at a lower price-to-earnings ratio than Nelnet, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Intrum AB (publ) and Nelnet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intrum AB (publ)	N/A	N/A	N/A
Nelnet	14.35%	8.26%	2.11%

Institutional and Insider Ownership

33.5% of Nelnet shares are owned by institutional investors. 40.3% of Nelnet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Nelnet beats Intrum AB (publ) on 9 of the 10 factors compared between the two stocks.

About Intrum AB (publ)

Intrum AB (publ), together with its subsidiaries, provides credit management services in Europe and internationally. The company offers credit optimization services, including credit monitoring, credit decision, factoring, and credit information services; and debt collection comprising surveillance and purchase services. It also provides payment services, such as reminder, payment guarantee, and VAT services; e-commerce services comprising credit management, payment solutions, and collection services; accounts receivables services that include invoice, payment booking, monitoring of due dates, reminder, and collection services; and financing and portfolio investment services. Intrum AB (publ) was founded in 1923 and is headquartered in Stockholm, Sweden.

About Nelnet

Nelnet, Inc. engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services. This segment also offers student loan servicing software; business process outsourcing services specialized in contact center management, such as inbound calls, outreach campaigns and sales, and interacting with customers through multi-channels, and processing and technology services. The Education Technology Services and Payments segment provides financial management services; school information system software; website design and cost-effective admissions software; FACTS Giving, a donation platform; and customized professional development and coaching services, educational instruction services, and technology products that aid in teacher and student evaluations. This segment also offers tuition payment plans, and service and technology for student billings, payments, and refunds; solutions for in-person, online, and mobile payment experiences on campus; payment processing services, such as credit card and electronic transfer; faith community, giving, and learning management services and technologies; and an integrated commerce payment platform, financial management, and tuition payment plan services, as well as a school management platform that provides administrative, information and financial management, and communication functions for K-12 schools. The Asset Generation and Management segment acquires, manages, and owns loan assets. The Nelnet Bank segment operates as an internet industrial bank. It also offers investment advisory, insurance, and reinsurance services, as well as engages in real estate investment business. The company was incorporated in 1977 and is headquartered in Lincoln, Nebraska.