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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SLM Corporation $891.46 million 4.99 $267.56 million $0.62 16.61
JetPay Corporation $70.19 million 0.42 $4.14 million ($0.69) -2.75

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.

Risk & Volatility

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

Insider & Institutional Ownership

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

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% -16.77% -0.80%

Analyst Recommendations

This is a summary of current recommendations and price targets 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 price target of $12.93, indicating a potential upside of 25.52%. Given SLM Corporation’s higher possible upside, research analysts clearly believe SLM Corporation is more favorable than JetPay Corporation.

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.

About JetPay Corporation

JetPay Corporation provides debit and credit card processing, payroll, human capital management (HCM) and card services to businesses and their employees in the United States. The company operates through two segments, JetPay Payment Processing and JetPay HR and Payroll. It offers debit and credit processing and automated clearing house payment services to small and medium-sized businesses, as well as to large entities, which processes Internet transactions and recurring billings; and HCM services, including payroll, tax filing, time and attendance, HR, and other related services to small and medium-sized employers. The company also provides transaction processing services, such as end-to-end encryption and tokenization; high speed network and authorization; batch processing; gift cards; fraud protection; and Website or payment application services; and MAGIC, a payments gateway that provides real-time integrated solutions to merchants. In addition, it provides low-cost money management and payment services to unbanked and under-banked employees through prepaid debit cards. The company was formerly known as Universal Business Payment Solutions Acquisition Corporation and changed its name to JetPay Corporation in August 2013. JetPay Corporation is headquartered in Center Valley, Pennsylvania.

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