Head-To-Head Review: SLM (SLM) & IEG (IEGH)

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

Profitability

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

Net Margins Return on Equity Return on Assets
SLM 22.81% 18.84% 1.79%
IEG N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations for SLM and IEG, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SLM 0 1 9 0 2.90
IEG 0 0 1 0 3.00

SLM currently has a consensus price target of $14.83, suggesting a potential upside of 41.33%. IEG has a consensus price target of $0.80, suggesting a potential upside of 196.30%. Given IEG’s stronger consensus rating and higher possible upside, analysts plainly believe IEG is more favorable than SLM.

Dividends

IEG pays an annual dividend of $0.01 per share and has a dividend yield of 3.7%. SLM does not pay a dividend. SLM has increased its dividend for 6 consecutive years.

Insider and Institutional Ownership

0.1% of IEG shares are held by institutional investors. 0.4% of SLM shares are held by insiders. Comparatively, 39.5% of IEG shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares SLM and IEG’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SLM $1.43 billion 3.19 $288.93 million $0.71 14.77
IEG N/A N/A N/A N/A N/A

SLM has higher revenue and earnings than IEG.

Summary

SLM beats IEG on 6 of the 11 factors compared between the two stocks.

SLM Company Profile

SLM Corporation, together with its subsidiaries, operates as a saving, planning, and paying for college company in the United States. The company originates and services private education loans to students and their families. Its loan portfolio also includes federal family education loan program, personal, and other loans. In addition, the company offers savings products, including certificates of deposits, money market deposit accounts, and high yield savings accounts; and a consumer savings network that provides financial rewards on everyday purchases to help families save for college. SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware.

IEG Company Profile

IEG Holdings Corporation, a consumer finance company, provides online unsecured consumer loans to individuals. It offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its unsecured consumer loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 19 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia. IEG Holdings Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.

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