Head to Head Review: SLM (SLM) versus Santander Consumer USA (SC)
SLM (NASDAQ: SLM) and Santander Consumer USA (NYSE:SC) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Valuation and Earnings
This table compares SLM and Santander Consumer USA’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SLM||$1.15 billion||4.29||$250.32 million||$0.67||17.00|
|Santander Consumer USA||$6.53 billion||0.96||$766.46 million||$1.86||9.34|
This is a summary of recent ratings and recommmendations for SLM and Santander Consumer USA, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Santander Consumer USA||0||5||7||0||2.58|
SLM presently has a consensus price target of $13.50, indicating a potential upside of 18.53%. Santander Consumer USA has a consensus price target of $16.75, indicating a potential downside of 3.57%. Given SLM’s stronger consensus rating and higher possible upside, analysts clearly believe SLM is more favorable than Santander Consumer USA.
Volatility & Risk
SLM has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Santander Consumer USA has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
Insider & Institutional Ownership
99.4% of SLM shares are owned by institutional investors. Comparatively, 91.4% of Santander Consumer USA shares are owned by institutional investors. 0.6% of SLM shares are owned by company insiders. Comparatively, 0.4% of Santander Consumer USA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Santander Consumer USA pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. SLM does not pay a dividend. Santander Consumer USA pays out 6.5% of its earnings in the form of a dividend.
This table compares SLM and Santander Consumer USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Santander Consumer USA||10.17%||11.33%||1.62%|
SLM beats Santander Consumer USA on 9 of the 14 factors compared between the two stocks.
SLM 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.
Santander Consumer USA Company Profile
Santander Consumer USA Holdings Inc. is the holding company for Santander Consumer USA Inc., and subsidiaries, a consumer finance company focused on vehicle finance and third party servicing. The Company operates through Consumer Finance segment. Its Consumer Finance business is focused on vehicle financial products and services, including retail installment contracts, vehicle leases, and dealer loans, as well as financial products and services related to motorcycles, recreational vehicles (RVs), and marine vehicles. It also includes its personal loan and point-of-sale financing operations. The Company’s primary business is the indirect origination and securitization of retail installment contracts, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. The Company offers auto financing products and services to Fiat Chrysler Automobiles US LLC (FCA) customers and dealers under the Chrysler Capital brand.
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