Analyzing goeasy (OTCMKTS:EHMEF) & SLM (NASDAQ:SLM)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for goeasy and SLM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
goeasy	1	3	0	0	1.75
SLM	1	6	5	0	2.33

SLM has a consensus target price of $29.80, indicating a potential upside of 13.65%. Given SLM’s stronger consensus rating and higher probable upside, analysts clearly believe SLM is more favorable than goeasy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
goeasy	N/A	N/A	N/A
SLM	26.09%	33.81%	2.51%

Earnings and Valuation

This table compares goeasy and SLM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
goeasy	N/A	N/A	N/A	$1.24	24.48
SLM	$2.63 billion	1.88	$744.85 million	$3.58	7.32

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

Insider & Institutional Ownership

23.7% of goeasy shares are owned by institutional investors. Comparatively, 98.9% of SLM shares are owned by institutional investors. 1.4% of SLM shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

goeasy pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. SLM pays an annual dividend of $0.52 per share and has a dividend yield of 2.0%. goeasy pays out 20.5% of its earnings in the form of a dividend. SLM pays out 14.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SLM has increased its dividend for 1 consecutive years. SLM is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

SLM beats goeasy on 13 of the 14 factors compared between the two stocks.

About goeasy

goeasy Ltd. provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. The company operates through two segments, Easyfinancial and Easyhome. It offers unsecured and secured installment loans; home equity secured instalment loans and automotive vehicle financing; and loans to finance the purchase of retail goods, powersports and recreational vehicles, home improvement projects, and healthcare related products and services. The companyleases household furniture, appliances, electronics, and unsecured lending products to retail consumers. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was incorporated in 1990 and is headquartered in Mississauga, Canada.

About SLM

SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It is also involved in the provision of retail deposit accounts, including certificates of deposit, money market accounts, and high-yield savings accounts; and interest-bearing omnibus accounts. The company was formerly known as New BLC Corporation and changed its name to SLM Corporation in December 2013. SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware.