Critical Analysis: Atlanticus Holdings Co. 9.25% Senior Notes due 2029 (NASDAQ:ATLCZ) & Nelnet (NYSE:NNI)

Atlanticus Holdings Co. 9.25% Senior Notes due 2029 (NASDAQ:ATLCZ) and Nelnet (NYSE:NNI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Atlanticus Holdings Co. 9.25% Senior Notes due 2029 and Nelnet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlanticus Holdings Co. 9.25% Senior Notes due 2029	0	0	0	0	0.00
Nelnet	1	2	0	0	1.67

Nelnet has a consensus target price of $140.00, suggesting a potential upside of 10.13%. Given Nelnet’s stronger consensus rating and higher possible upside, analysts clearly believe Nelnet is more favorable than Atlanticus Holdings Co. 9.25% Senior Notes due 2029.

Profitability

This table compares Atlanticus Holdings Co. 9.25% Senior Notes due 2029 and Nelnet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlanticus Holdings Co. 9.25% Senior Notes due 2029	N/A	N/A	N/A
Nelnet	14.35%	8.26%	2.11%

Institutional and Insider Ownership

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

Valuation & Earnings

This table compares Atlanticus Holdings Co. 9.25% Senior Notes due 2029 and Nelnet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlanticus Holdings Co. 9.25% Senior Notes due 2029	N/A	N/A	N/A	N/A	N/A
Nelnet	$2.26 billion	2.02	$428.47 million	$8.36	15.21

Nelnet has higher revenue and earnings than Atlanticus Holdings Co. 9.25% Senior Notes due 2029.

Summary

Nelnet beats Atlanticus Holdings Co. 9.25% Senior Notes due 2029 on 8 of the 8 factors compared between the two stocks.

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.