Head-To-Head Analysis: SLM (NASDAQ:SLM) and EZCORP (NASDAQ:EZPW)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SLM	$2.62 billion	2.19	$608.33 million	$1.99	13.84
EZCORP	$1.16 billion	0.95	$83.10 million	$1.28	14.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SLM	15.46%	21.93%	1.49%
EZCORP	7.96%	11.85%	6.13%

Institutional and Insider Ownership

98.9% of SLM shares are owned by institutional investors. Comparatively, 99.8% of EZCORP shares are owned by institutional investors. 1.3% of SLM shares are owned by company insiders. Comparatively, 2.1% of EZCORP shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

SLM has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, EZCORP has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SLM and EZCORP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SLM	0	2	8	0	2.80
EZCORP	0	2	3	1	2.83

SLM presently has a consensus price target of $35.78, indicating a potential upside of 29.86%. EZCORP has a consensus price target of $18.50, indicating a potential upside of 1.76%. Given SLM’s higher probable upside, research analysts clearly believe SLM is more favorable than EZCORP.

Summary

SLM beats EZCORP on 9 of the 15 factors compared between the two stocks.

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.

About EZCORP

EZCORP, Inc. provides pawn services in the United States and Latin America. The company operates through three segments: U.S. Pawn, Latin America Pawn, and Other Investments. The company offers pawn loans collateralized by tangible personal property, jewelry, consumer electronics, tools, sporting goods, and musical instruments. It also retails merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers. In addition, the company provides EZ+, a web-based application that allow customers to manage their pawn transactions, layaways, and loyalty rewards online. Further, it operates under the EZPAWN, Value Pawn & Jewelry, Empeño Fácil, Cash Apoyo Efectivo, GuatePrenda, and MaxiEfectivo brands. EZCORP, Inc. was incorporated in 1989 and is headquartered in Austin, Texas.