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

Volatility and Risk

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

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 5.00 $267.56 million $0.62 16.66
JetPay Corporation $63.63 million 0.45 $3.60 million ($0.88) -2.10

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.

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 -11.59% -10.80% -0.67%

Analyst Recommendations

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

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 target price of $12.93, indicating a potential upside of 25.16%. Given SLM Corporation’s higher possible upside, research analysts plainly believe SLM Corporation is more favorable than JetPay Corporation.

Institutional and Insider Ownership

99.1% 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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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