Yes, a floating movement component might serve your purpose: if you don’t NEED a full character component and navmesh it would certainly be more efficient to do it your way.
If your pawn and object have collision, the reason your pawn is circling around it is because they are trying to occupy the same position but prevented from doing so. You could add an overlap or collision event, which turns off the input movement when it occurs… or as you say get distance between actors (there is a node for this) and turn off input movement when it is below a certain threshold.