Comprehensive Stock Comparison
Compare Nelnet, Inc. (NNI) vs SLM Corporation (SLM) 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 | SLM | 5.2% revenue growth vs NNI's -55.5% |
| Value | SLM | Lower P/E (6.8x vs 14.7x) |
| Quality / Margins | NNI | 32.4% net margin vs SLM's 20.4% |
| Stability / Safety | NNI | Beta 0.64 vs SLM's 1.16 |
| Dividends | NNI | 3.1% yield, 12-year raise streak, vs SLM's 2.4% |
| Momentum (1Y) | NNI | +7.0% vs SLM's -36.2% |
| Efficiency (ROA) | NNI | 3.0% ROA vs SLM's 2.1% |
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.
SLM Corporation is a financial services company that originates and services private student loans for education financing in the United States. It generates revenue primarily from interest on its student loan portfolio — which constitutes the vast majority of its business — supplemented by fees from retail deposit accounts and credit card services. The company's moat lies in its specialized expertise in student lending, established relationships with educational institutions, and the regulatory complexity of the education finance market that creates barriers to entry.
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 — strongest in Financial Metrics and Profitability & Efficiency. 1 category is tied.
Financial Metrics (TTM)
SLM is the larger business by revenue, generating $3.0B annually — 3.6x NNI's $822M. NNI is the more profitable business, keeping 32.4% of every revenue dollar as net income compared to SLM's 20.4%.
| Metric | NNINelnet, Inc. | SLMSLM Corporation |
|---|---|---|
| RevenueTrailing 12 months | $822M | $3.0B |
| EBITDAEarnings before interest/tax | $726M | $824M |
| Net IncomeAfter-tax profit | $428M | $623M |
| Free Cash FlowCash after capex | $267M | -$333M |
| Gross MarginGross profit ÷ Revenue | — | +48.2% |
| Operating MarginEBIT ÷ Revenue | — | +26.7% |
| Net MarginNet income ÷ Revenue | +32.4% | +20.4% |
| FCF MarginFCF ÷ Revenue | -9.5% | -11.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -6.4% | +3.7% |
Valuation Metrics
| Metric | NNINelnet, Inc. | SLMSLM Corporation |
|---|---|---|
| Market CapShares × price | $1.4B | $3.7B |
| Enterprise ValueMkt cap + debt − cash | -$1.3B | $5.5B |
| Trailing P/EPrice ÷ TTM EPS | — | 6.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.70x | 6.85x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.47x |
| EV / EBITDAEnterprise value multiple | -1.75x | 6.70x |
| Price / SalesMarket cap ÷ Revenue | 1.67x | 1.25x |
| Price / BookPrice ÷ Book value/share | 0.88x | 1.91x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
NNI delivers a 27.3% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $27 for SLM. On the Piotroski fundamental quality scale (0–9), SLM scores 4/9 vs NNI's 3/9, reflecting mixed financial health.
| Metric | NNINelnet, Inc. | SLMSLM Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +27.3% | +26.6% |
| ROA (TTM)Return on assets | +3.0% | +2.1% |
| ROICReturn on invested capital | — | +7.6% |
| ROCEReturn on capital employed | — | +9.7% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 4 |
| Debt / EquityFinancial leverage | — | 2.98x |
| Net DebtTotal debt minus cash | -$2.6B | $1.7B |
| Cash & Equiv.Liquid assets | $2.6B | $4.7B |
| Total DebtShort + long-term debt | $0 | $6.4B |
| Interest CoverageEBIT ÷ Interest expense | 0.97x | 0.71x |
Total Returns (with DRIP)
A $10,000 investment in NNI five years ago would be worth $18,187 today (with dividends reinvested), compared to $13,057 for SLM. Over the past 12 months, NNI leads with a +7.0% total return vs SLM's -36.2%. The 3-year compound annual growth rate (CAGR) favors NNI at 12.4% vs SLM's 11.9% — a key indicator of consistent wealth creation.
| Metric | NNINelnet, Inc. | SLMSLM Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +0.6% | -31.6% |
| 1-Year ReturnPast 12 months | +7.0% | -36.2% |
| 3-Year ReturnCumulative with dividends | +41.9% | +40.2% |
| 5-Year ReturnCumulative with dividends | +81.9% | +30.6% |
| 10-Year ReturnCumulative with dividends | +267.6% | +260.3% |
| CAGR (3Y)Annualised 3-year return | +12.4% | +11.9% |
Risk & Volatility
NNI is the less volatile stock with a 0.64 beta — it tends to amplify market swings less than SLM's 1.16 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 SLM's 53.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NNINelnet, Inc. | SLMSLM Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.64x | 1.16x |
| 52-Week HighHighest price in past year | $142.87 | $34.97 |
| 52-Week LowLowest price in past year | $98.15 | $18.71 |
| % of 52W HighCurrent price vs 52-week peak | +90.6% | +53.6% |
| RSI (14)Momentum oscillator 0–100 | 50.1 | 30.7 |
| Avg Volume (50D)Average daily shares traded | 82K | 2.4M |
Analyst Outlook
Wall Street rates NNI as "Hold" and SLM as "Buy". For income investors, NNI offers the higher dividend yield at 3.13% vs SLM's 2.41%.
| Metric | NNINelnet, Inc. | SLMSLM Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | — | $31.83 |
| # AnalystsCovering analysts | 3 | 25 |
| Dividend YieldAnnual dividend ÷ price | +3.1% | +2.4% |
| Dividend StreakConsecutive years of raises | 12 | 6 |
| Dividend / ShareAnnual DPS | $4.05 | $0.45 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.0% | +6.6% |
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% |
| SLM Corporation (SLM) | 100 | 249.09 | +149.1% |
Nelnet, Inc. (NNI) returned +82% over 5 years vs SLM Corporation (SLM)'s +31%. 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% |
| SLM Corporation (SLM) | $1.1B | $3.0B | +160.7% |
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% |
| SLM Corporation (SLM) | 21.8% | 20.4% | -6.8% |
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% |
| SLM Corporation (SLM) | 18.2 | 10.3 | -43.4% |
Nelnet, Inc. has traded in a 8x–37x P/E range over 8 years; current trailing P/E is ~21x. SLM Corporation has traded in a 5x–18x P/E range over 8 years; current trailing P/E is ~7x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nelnet, Inc. (NNI) | 6.02 | 0 | -100.0% |
| SLM Corporation (SLM) | 0.53 | 2.68 | +405.7% |
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). SLM Corporation generated $-329M FCF in 2024 (-565% vs 2021).
NNI vs SLM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NNI or SLM a better buy right now?
SLM Corporation (SLM) offers the better valuation at 7.0x trailing P/E (6.8x forward), making it the more compelling value choice. Analysts rate SLM Corporation (SLM) a "Buy" — based on 25 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 SLM?
On forward P/E, SLM Corporation is actually cheaper at 6.8x.
03Which is the better long-term investment — NNI or SLM?
Over the past 5 years, Nelnet, Inc. (NNI) delivered a total return of +81.9%, compared to +30.6% for SLM Corporation (SLM). 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 SLM's +260.3%. 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 SLM?
By beta (market sensitivity over 5 years), Nelnet, Inc. (NNI) is the lower-risk stock at 0.64β versus SLM Corporation's 1.16β — meaning SLM is approximately 80% more volatile than NNI relative to the S&P 500.
05Which has better profit margins — NNI or SLM?
Nelnet, Inc. (NNI) is the more profitable company, earning 32.4% net margin versus 20.4% for SLM Corporation — meaning it keeps 32.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SLM leads at 26.7% versus 0.0% for NNI. At the gross margin level — before operating expenses — SLM leads at 48.2%, 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 SLM more undervalued right now?
On forward earnings alone, SLM Corporation (SLM) trades at 6.8x forward P/E versus 14.7x for Nelnet, Inc. — 7.8x cheaper on a one-year earnings basis.
07Which pays a better dividend — NNI or SLM?
All stocks in this comparison pay dividends. Nelnet, Inc. (NNI) offers the highest yield at 3.1%, versus 2.4% for SLM Corporation (SLM).
08Is NNI or SLM 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). Both have compounded well over 10 years (NNI: +267.6%, SLM: +260.3%), 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 SLM?
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; SLM is a small-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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