Comprehensive Stock Comparison
Compare Nelnet, Inc. (NNI) vs Capital One Financial Corporation (COF) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | COF | 9.0% revenue growth vs NNI's -55.5% |
| Value | COF | Lower P/E (9.7x vs 14.7x) |
| Quality / Margins | NNI | 32.4% net margin vs COF's 8.8% |
| Stability / Safety | NNI | Beta 0.64 vs COF's 1.53 |
| Dividends | NNI | 3.1% yield, 12-year raise streak, vs COF's 1.2% |
| Momentum (1Y) | NNI | +7.0% vs COF's -1.1% |
| Efficiency (ROA) | NNI | 3.0% ROA vs COF's 0.2% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Nelnet is a diversified financial services company focused primarily on student loan servicing and education technology. It generates revenue through loan servicing fees (its largest segment), education technology platforms, and payment processing services for educational institutions. The company's competitive advantage lies in its deep expertise in the complex student loan ecosystem and its established relationships with educational institutions and government agencies.
Capital One is a diversified financial services company that operates primarily as a credit card issuer and consumer bank. It generates revenue through three main segments: credit card interest and fees (its largest segment), consumer banking services, and commercial banking operations. The company's key advantage lies in its sophisticated data analytics and technology platform—which enables targeted marketing and risk assessment—coupled with its direct banking model that reduces physical branch costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
NNI leads in 5 of 6 categories (Valuation Metrics, Profitability & Efficiency). COF leads in 1 (Financial Metrics).
Financial Metrics (TTM)
COF is the larger business by revenue, generating $53.9B annually — 65.6x NNI's $822M. NNI is the more profitable business, keeping 32.4% of every revenue dollar as net income compared to COF's 8.8%.
| Metric | NNINelnet, Inc. | COFCapital One Finan… |
|---|---|---|
| RevenueTrailing 12 months | $822M | $53.9B |
| EBITDAEarnings before interest/tax | $726M | $6.1B |
| Net IncomeAfter-tax profit | $428M | $1.4B |
| Free Cash FlowCash after capex | $267M | $20.8B |
| Gross MarginGross profit ÷ Revenue | — | +50.8% |
| Operating MarginEBIT ÷ Revenue | — | +11.0% |
| Net MarginNet income ÷ Revenue | +32.4% | +8.8% |
| FCF MarginFCF ÷ Revenue | -9.5% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -6.4% | +9.5% |
Valuation Metrics
| Metric | NNINelnet, Inc. | COFCapital One Finan… |
|---|---|---|
| Market CapShares × price | $1.4B | $124.4B |
| Enterprise ValueMkt cap + debt − cash | -$1.3B | $126.7B |
| Trailing P/EPrice ÷ TTM EPS | — | 16.88x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.70x | 9.67x |
| PEG RatioP/E ÷ EPS growth rate | — | 10.08x |
| EV / EBITDAEnterprise value multiple | -1.75x | 13.85x |
| Price / SalesMarket cap ÷ Revenue | 1.67x | 2.31x |
| Price / BookPrice ÷ Book value/share | 0.88x | 1.23x |
| Price / FCFMarket cap ÷ FCF | — | 7.34x |
Profitability & Efficiency
NNI delivers a 27.3% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $1 for COF. On the Piotroski fundamental quality scale (0–9), COF scores 5/9 vs NNI's 3/9, reflecting solid financial health.
| Metric | NNINelnet, Inc. | COFCapital One Finan… |
|---|---|---|
| ROE (TTM)Return on equity | +27.3% | +1.2% |
| ROA (TTM)Return on assets | +3.0% | +0.2% |
| ROICReturn on invested capital | — | +4.1% |
| ROCEReturn on capital employed | — | +4.6% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 5 |
| Debt / EquityFinancial leverage | — | 0.75x |
| Net DebtTotal debt minus cash | -$2.6B | $2.3B |
| Cash & Equiv.Liquid assets | $2.6B | $43.2B |
| Total DebtShort + long-term debt | $0 | $45.6B |
| Interest CoverageEBIT ÷ Interest expense | 0.97x | 0.11x |
Total Returns (with DRIP)
A $10,000 investment in NNI five years ago would be worth $18,187 today (with dividends reinvested), compared to $16,819 for COF. Over the past 12 months, NNI leads with a +7.0% total return vs COF's -1.1%. The 3-year compound annual growth rate (CAGR) favors COF at 23.1% vs NNI's 12.4% — a key indicator of consistent wealth creation.
| Metric | NNINelnet, Inc. | COFCapital One Finan… |
|---|---|---|
| YTD ReturnYear-to-date | +0.6% | -20.8% |
| 1-Year ReturnPast 12 months | +7.0% | -1.1% |
| 3-Year ReturnCumulative with dividends | +41.9% | +86.3% |
| 5-Year ReturnCumulative with dividends | +81.9% | +68.2% |
| 10-Year ReturnCumulative with dividends | +267.6% | +228.4% |
| CAGR (3Y)Annualised 3-year return | +12.4% | +23.1% |
Risk & Volatility
NNI is the less volatile stock with a 0.64 beta — it tends to amplify market swings less than COF's 1.53 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NNI currently trades 90.6% from its 52-week high vs COF's 75.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NNINelnet, Inc. | COFCapital One Finan… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.64x | 1.53x |
| 52-Week HighHighest price in past year | $142.87 | $259.64 |
| 52-Week LowLowest price in past year | $98.15 | $143.22 |
| % of 52W HighCurrent price vs 52-week peak | +90.6% | +75.4% |
| RSI (14)Momentum oscillator 0–100 | 50.1 | 45.1 |
| Avg Volume (50D)Average daily shares traded | 82K | 4.5M |
Analyst Outlook
Wall Street rates NNI as "Hold" and COF as "Buy". For income investors, NNI offers the higher dividend yield at 3.13% vs COF's 1.24%.
| Metric | NNINelnet, Inc. | COFCapital One Finan… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | — | $273.62 |
| # AnalystsCovering analysts | 3 | 56 |
| Dividend YieldAnnual dividend ÷ price | +3.1% | +1.2% |
| Dividend StreakConsecutive years of raises | 12 | 2 |
| Dividend / ShareAnnual DPS | $4.05 | $2.43 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.0% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Nelnet, Inc. (NNI) | 100 | 255.17 | +155.2% |
| Capital One Financi… (COF) | 100 | 244.54 | +144.5% |
Nelnet, Inc. (NNI) returned +82% over 5 years vs Capital One Financi… (COF)'s +68%. A $10,000 investment in NNI 5 years ago would be worth $18,187 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nelnet, Inc. (NNI) | $1.2B | $822M | -31.2% |
| Capital One Financi… (COF) | $27.5B | $53.9B | +96.0% |
Nelnet, Inc.'s revenue grew from $1.2B (2016) to $822M (2025) — a -4.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nelnet, Inc. (NNI) | 21.5% | 32.4% | +50.7% |
| Capital One Financi… (COF) | 13.6% | 8.8% | -35.4% |
Nelnet, Inc.'s net margin went from 22% (2016) to 32% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Nelnet, Inc. (NNI) | 13.2 | 21.3 | +61.4% |
| Capital One Financi… (COF) | 28.5 | 15.4 | -46.0% |
Nelnet, Inc. has traded in a 8x–37x P/E range over 8 years; current trailing P/E is ~21x. Capital One Financial Corporation has traded in a 5x–29x P/E range over 8 years; current trailing P/E is ~17x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nelnet, Inc. (NNI) | 6.02 | 0 | -100.0% |
| Capital One Financi… (COF) | 6.89 | 11.59 | +68.2% |
Nelnet, Inc.'s EPS grew from $6.02 (2016) to $0.00 (2025) — a -100% CAGR.
Chart 6Free Cash Flow — 5 Years
Nelnet, Inc. generated $-78M FCF in 2025 (-119% vs 2021). Capital One Financial Corporation generated $17B FCF in 2024 (+46% vs 2021).
NNI vs COF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NNI or COF a better buy right now?
Capital One Financial Corporation (COF) offers the better valuation at 16.9x trailing P/E (9.7x forward), making it the more compelling value choice. Analysts rate Capital One Financial Corporation (COF) a "Buy" — based on 56 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — NNI or COF?
On forward P/E, Capital One Financial Corporation is actually cheaper at 9.7x.
03Which is the better long-term investment — NNI or COF?
Over the past 5 years, Nelnet, Inc. (NNI) delivered a total return of +81.9%, compared to +68.2% for Capital One Financial Corporation (COF). A $10,000 investment in NNI five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NNI returned +267.6% versus COF's +228.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NNI or COF?
By beta (market sensitivity over 5 years), Nelnet, Inc. (NNI) is the lower-risk stock at 0.64β versus Capital One Financial Corporation's 1.53β — meaning COF is approximately 138% more volatile than NNI relative to the S&P 500.
05Which has better profit margins — NNI or COF?
Nelnet, Inc. (NNI) is the more profitable company, earning 32.4% net margin versus 8.8% for Capital One Financial Corporation — meaning it keeps 32.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: COF leads at 11.0% versus 0.0% for NNI. At the gross margin level — before operating expenses — COF leads at 50.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is NNI or COF more undervalued right now?
On forward earnings alone, Capital One Financial Corporation (COF) trades at 9.7x forward P/E versus 14.7x for Nelnet, Inc. — 5.0x cheaper on a one-year earnings basis.
07Which pays a better dividend — NNI or COF?
All stocks in this comparison pay dividends. Nelnet, Inc. (NNI) offers the highest yield at 3.1%, versus 1.2% for Capital One Financial Corporation (COF).
08Is NNI or COF better for a retirement portfolio?
For long-horizon retirement investors, Nelnet, Inc. (NNI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.64), 3.1% yield, +267.6% 10Y return). Capital One Financial Corporation (COF) carries a higher beta of 1.53 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (NNI: +267.6%, COF: +228.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between NNI and COF?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: NNI is a small-cap income-oriented stock; COF is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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