Head to Head Survey: OneMain (NYSE:OMF) versus SLM (NASDAQ:SLMBP)

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

Earnings & Valuation

This table compares SLM and OneMain”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SLM	$1.96 billion	N/A	N/A	N/A	N/A
OneMain	$5.46 billion	1.37	$783.00 million	$6.64	9.79

OneMain has higher revenue and earnings than SLM.

Dividends

SLM pays an annual dividend of $7.37 per share and has a dividend yield of 9.8%. OneMain pays an annual dividend of $4.20 per share and has a dividend yield of 6.5%. OneMain pays out 63.3% of its earnings in the form of a dividend. OneMain has increased its dividend for 5 consecutive years.

Institutional and Insider Ownership

85.8% of OneMain shares are owned by institutional investors. 0.3% of OneMain shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SLM	N/A	N/A	N/A
OneMain	13.92%	23.49%	2.92%

Analyst Ratings

This is a breakdown of current ratings and price targets for SLM and OneMain, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SLM	0	1	2	0	2.67
OneMain	1	3	8	0	2.58

SLM currently has a consensus target price of $40.00, indicating a potential downside of 46.61%. OneMain has a consensus target price of $68.40, indicating a potential upside of 5.18%. Given OneMain’s higher possible upside, analysts clearly believe OneMain is more favorable than SLM.

Summary

OneMain beats SLM on 9 of the 12 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 OneMain

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It sells its products through its website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.