JetPay Corporation (NASDAQ: JTPY) and SLM Corporation (NASDAQ:SLM) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitabiliy, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares JetPay Corporation and SLM Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
JetPay Corporation $63.63 million 0.50 $3.60 million ($0.88) -2.33
SLM Corporation $891.46 million 5.29 $267.56 million $0.62 17.63

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

Net Margins Return on Equity Return on Assets
JetPay Corporation -11.59% -10.80% -0.67%
SLM Corporation 22.81% 16.31% 1.58%

Insider & Institutional Ownership

13.9% of JetPay Corporation shares are owned by institutional investors. Comparatively, 99.1% of SLM Corporation shares are owned by institutional investors. 62.9% of JetPay Corporation shares are owned by company insiders. Comparatively, 0.6% of SLM Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JetPay Corporation 0 0 0 0 N/A
SLM Corporation 1 1 5 1 2.75

SLM Corporation has a consensus price target of $12.44, suggesting a potential upside of 13.79%. Given SLM Corporation’s higher possible upside, analysts plainly believe SLM Corporation is more favorable than JetPay Corporation.

Summary

SLM Corporation beats JetPay Corporation on 12 of the 13 factors compared between the two stocks.

SLM Corporation Company Profile

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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