AES vs Navient Which Offers More Value?

AES Corporation (AES) and Navient Corporation (NAV) are two companies operating in different sectors of the market - energy and finance respectively. AES is a global power company focusing on renewable energy sources and providing electricity to millions of customers worldwide. Navient, on the other hand, is a leading provider of education loan management and servicing solutions. Despite their differences, both companies offer investment opportunities for those looking to diversify their portfolio and capitalize on their respective industries.

AES or Navient?

When comparing AES and Navient, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AES and Navient.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AES has a dividend yield of 5.17%, while Navient has a dividend yield of 4.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AES reports a 5-year dividend growth of 5.00% year and a payout ratio of 49.42%. On the other hand, Navient reports a 5-year dividend growth of 0.00% year and a payout ratio of 38.71%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AES P/E ratio at 9.94 and Navient's P/E ratio at 8.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AES P/B ratio is 2.89 while Navient's P/B ratio is 0.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AES has seen a 5-year revenue growth of 0.43%, while Navient's is 3.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AES's ROE at 32.46% and Navient's ROE at 6.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.09 for AES and $14.79 for Navient. Over the past year, AES's prices ranged from $12.53 to $22.21, with a yearly change of 77.25%. Navient's prices fluctuated between $13.71 and $19.68, with a yearly change of 43.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.