Gamco Investors (GBL) versus Navient (NAVI) Critical Comparison

Gamco Investors (NYSE: GBL) and Navient (NASDAQ:NAVI) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares Gamco Investors and Navient’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gamco Investors 22.16% -94.36% 55.78%
Navient 6.43% 13.91% 0.43%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Gamco Investors and Navient, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gamco Investors 0 0 0 0 N/A
Navient 1 4 6 0 2.45

Navient has a consensus target price of $16.72, indicating a potential upside of 28.31%. Given Navient’s higher possible upside, analysts plainly believe Navient is more favorable than Gamco Investors.

Risk & Volatility

Gamco Investors has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Navient has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500.

Institutional & Insider Ownership

17.4% of Gamco Investors shares are owned by institutional investors. Comparatively, 98.1% of Navient shares are owned by institutional investors. 81.0% of Gamco Investors shares are owned by insiders. Comparatively, 1.7% of Navient 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.

Dividends

Gamco Investors pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Navient pays an annual dividend of $0.64 per share and has a dividend yield of 4.9%. Navient pays out 35.8% of its earnings in the form of a dividend. Gamco Investors has increased its dividend for 6 consecutive years.

Earnings and Valuation

This table compares Gamco Investors and Navient’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gamco Investors $360.52 million 2.16 $77.80 million N/A N/A
Navient $5.18 billion 0.67 $292.00 million $1.79 7.28

Navient has higher revenue and earnings than Gamco Investors.

Summary

Navient beats Gamco Investors on 8 of the 15 factors compared between the two stocks.

About Gamco Investors

GAMCO Investors, Inc. is a publicly owned holding investment manager. The firm also provides wealth management, investment advisory, institutional research, brokerage, dealer, underwriting, and distribution services to its clients. It provides its services to individuals including high net worth individuals, corporate pension and profit-sharing plans, foundations, endowments, jointly trust plans, municipalities, and investment companies. The firm, through its subsidiaries, manages separate client-focused equity, fixed income, and balanced portfolios. It also launches equity, fixed income, and balanced mutual funds and manages equity mutual funds for its clients. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in value stocks of companies. The firm employs fundamental analysis with a focus on bottom-up stock picking approach to create its portfolios. It conducts in-house research to make its investments. The firm was founded in 1976 and is based in Rye, New York with additional offices in Greenwich, Connecticut; Bannockburn, Illinois; and Tokyo, Japan. GAMCO Investors, Inc. operates as a subsidiary of GGCP, Inc.

About Navient

Navient Corporation provides asset management and business processing services to education, health care, and government clients at the federal, state, and local levels in the United States. The company operates in three segments: Federal Family Education Loan Program (FFELP) Loans, Private Education Loans, and Business Services. It holds the portfolio of education loans insured or guaranteed under the FFELP, as well as the portfolio of private education loans; and originates private education refinance loans. The company also services education loans owned by the United States Department of Education, financial institutions, and nonprofit education lenders. In addition, it offers asset recovery services for loans and receivables on behalf of guarantors of FFELP loans and higher education institutions. Further, the company provides asset recovery and other business processing services for federal, state, court, and municipal clients; public authorities; and health care organizations. Navient Corporation was founded in 1973 and is headquartered in Wilmington, Delaware.

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