SLM Corporation (NASDAQ: SLM) and JetPay Corporation (NASDAQ:JTPY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares SLM Corporation and JetPay Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SLM Corporation 22.81% 16.31% 1.58%
JetPay Corporation -4.47% -14.71% -0.81%

Earnings & Valuation

This table compares SLM Corporation and JetPay Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SLM Corporation $891.46 million 5.03 $267.56 million $0.62 16.77
JetPay Corporation $63.63 million 0.39 $3.60 million ($0.69) -2.32

SLM Corporation has higher revenue and earnings than JetPay Corporation. JetPay Corporation is trading at a lower price-to-earnings ratio than SLM Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

99.2% of SLM Corporation shares are held by institutional investors. Comparatively, 13.9% of JetPay Corporation shares are held by institutional investors. 0.6% of SLM Corporation shares are held by company insiders. Comparatively, 62.9% of JetPay Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SLM Corporation and JetPay Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SLM Corporation 1 1 5 0 2.57
JetPay Corporation 0 0 0 0 N/A

SLM Corporation currently has a consensus price target of $12.93, suggesting a potential upside of 24.31%. Given SLM Corporation’s higher probable upside, research analysts plainly believe SLM Corporation is more favorable than JetPay Corporation.

Risk & Volatility

SLM Corporation has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, JetPay Corporation has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.

Summary

SLM Corporation beats JetPay Corporation on 11 of the 12 factors compared between the two stocks.

About SLM Corporation

SLM Corporation (Sallie Mae) is the nation’s saving, planning, and paying for college company. Sallie Mae offers products, which promote personal finance including private education loans, Upromise rewards, scholarship search, college financial planning tools, insurance, and online retail banking.

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