WallStSmart

SLM Corp (SLM)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synchrony Financial generates 491% more annual revenue ($9.76B vs $1.65B). SLM leads profitability with a 45.1% profit margin vs 36.4%. SLM appears more attractively valued with a PEG of 0.58. SLM earns a higher WallStSmart Score of 90/100 (A+).

SLM

Exceptional Buy

90

out of 100

Grade: A+

Growth: 8.7Profit: 8.5Value: 10.0Quality: 5.5
Piotroski: 7/9Altman Z: 0.63

SYF

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SLMUndervalued (+84.0%)

Margin of Safety

+84.0%

Fair Value

$161.93

Current Price

$20.43

$141.50 discount

UndervaluedFair: $161.93Overvalued
SYFUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$178.92

Current Price

$67.63

$111.29 discount

UndervaluedFair: $178.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SLM6 strengths · Avg: 10.0/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.3%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
66.8%10/10

Strong operational efficiency at 66.8%

Revenue GrowthGrowth
67.8%10/10

Revenue surging 67.8% year-over-year

EPS GrowthGrowth
126.2%10/10

Earnings expanding 126.2% YoY

SYF6 strengths · Avg: 9.2/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Profit MarginProfitability
36.4%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
48.5%10/10

Strong operational efficiency at 48.5%

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.45B8/10

Generating 2.5B in free cash flow

Areas to Watch

SLM2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.632/10

Distress zone — elevated risk

Debt/EquityHealth
2.391/10

Elevated debt levels

SYF2 concerns · Avg: 2.0/10
PEG RatioValuation
3.272/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.032/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SLM

The strongest argument for SLM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 45.1% and operating margin at 66.8%. Revenue growth of 67.8% demonstrates continued momentum.

Bull Case : SYF

The strongest argument for SYF centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 36.4% and operating margin at 48.5%.

Bear Case : SLM

The primary concerns for SLM are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Bear Case : SYF

The primary concerns for SYF are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

SLM profiles as a growth stock while SYF is a value play — different risk/reward profiles.

SYF carries more volatility with a beta of 1.41 — expect wider price swings.

SLM is growing revenue faster at 67.8% — sustainability is the question.

SYF generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

SLM scores higher overall (90/100 vs 71/100), backed by strong 45.1% margins and 67.8% revenue growth. SYF offers better value entry with a 59.2% margin of safety. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

SLM Corp

FINANCIAL SERVICES · CREDIT SERVICES · USA

SLM Corporation originates and provides private education loan services to students and their families to finance the cost of their education in the United States. The company is headquartered in Newark, Delaware.

Synchrony Financial

FINANCIAL SERVICES · CREDIT SERVICES · USA

Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.

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