WallStSmart

Nelnet Inc (NNI)vsVisa Inc. Class A (V)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Visa Inc. Class A generates 2374% more annual revenue ($41.39B vs $1.67B). V leads profitability with a 50.2% profit margin vs 25.6%. NNI appears more attractively valued with a PEG of 0.46. V earns a higher WallStSmart Score of 68/100 (B-).

NNI

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 7.0Value: 7.3Quality: 3.5
Piotroski: 7/9Altman Z: 0.87

V

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 10.0Value: 9.3Quality: 6.5
Piotroski: 4/9Altman Z: 1.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NNISignificantly Overvalued (-62.9%)

Margin of Safety

-62.9%

Fair Value

$80.17

Current Price

$128.32

$48.15 premium

UndervaluedFair: $80.17Overvalued
VUndervalued (+17.4%)

Margin of Safety

+17.4%

Fair Value

$369.26

Current Price

$304.91

$64.35 discount

UndervaluedFair: $369.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NNI4 strengths · Avg: 9.8/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
25.6%9/10

Keeps 26 of every $100 in revenue as profit

V5 strengths · Avg: 9.6/10
Market CapQuality
$585.66B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
53.9%10/10

Every $100 of equity generates 54 in profit

Profit MarginProfitability
50.2%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
68.3%10/10

Strong operational efficiency at 68.3%

Free Cash FlowQuality
$6.40B8/10

Generating 6.4B in free cash flow

Areas to Watch

NNI4 concerns · Avg: 1.8/10
Revenue GrowthGrowth
-8.6%2/10

Revenue declined 8.6%

EPS GrowthGrowth
-7.6%2/10

Earnings declined 7.6%

Altman Z-ScoreHealth
0.872/10

Distress zone — elevated risk

Debt/EquityHealth
2.141/10

Elevated debt levels

V4 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

P/E RatioValuation
28.5x4/10

Moderate valuation

Price/BookValuation
15.2x4/10

Trading at 15.2x book value

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : NNI

The strongest argument for NNI centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 25.6% and operating margin at 17.7%. PEG of 0.46 suggests the stock is reasonably priced for its growth.

Bull Case : V

The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : NNI

The primary concerns for NNI are Revenue Growth, EPS Growth, Altman Z-Score. Debt-to-equity of 2.14 is elevated, increasing financial risk.

Bear Case : V

The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

NNI profiles as a declining stock while V is a mature play — different risk/reward profiles.

NNI carries more volatility with a beta of 0.83 — expect wider price swings.

V is growing revenue faster at 14.6% — sustainability is the question.

V generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

V scores higher overall (68/100 vs 58/100), backed by strong 50.2% margins and 14.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Nelnet Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Nelnet, Inc. is engaged in the loan management, communications and educational technology, services and payment processing businesses globally. The company is headquartered in Lincoln, Nebraska.

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Visa Inc. Class A

FINANCIAL SERVICES · CREDIT SERVICES · USA

Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.

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