Comprehensive Stock Comparison
Compare SLM Corporation (SLM) vs Capital One Financial Corporation (COF) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | COF | 9.0% revenue growth vs SLM's 5.2% |
| Value | SLM | Lower P/E (6.8x vs 9.7x), PEG 0.46 vs 10.08 |
| Quality / Margins | SLM | 20.4% net margin vs COF's 8.8% |
| Stability / Safety | SLM | Beta 1.16 vs COF's 1.53 |
| Dividends | SLM | 2.4% yield, 6-year raise streak, vs COF's 1.2% |
| Momentum (1Y) | COF | -1.1% vs SLM's -36.2% |
| Efficiency (ROA) | SLM | 2.1% ROA vs COF's 0.2%, ROIC 7.6% vs 4.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
SLM Corporation is a financial services company that originates and services private student loans for education financing in the United States. It generates revenue primarily from interest on its student loan portfolio — which constitutes the vast majority of its business — supplemented by fees from retail deposit accounts and credit card services. The company's moat lies in its specialized expertise in student lending, established relationships with educational institutions, and the regulatory complexity of the education finance market that creates barriers to entry.
Capital One is a diversified financial services company that operates primarily as a credit card issuer and consumer bank. It generates revenue through three main segments: credit card interest and fees (its largest segment), consumer banking services, and commercial banking operations. The company's key advantage lies in its sophisticated data analytics and technology platform—which enables targeted marketing and risk assessment—coupled with its direct banking model that reduces physical branch costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
SLM leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). COF leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
COF is the larger business by revenue, generating $53.9B annually — 18.1x SLM's $3.0B. SLM is the more profitable business, keeping 20.4% of every revenue dollar as net income compared to COF's 8.8%.
| Metric | SLMSLM Corporation | COFCapital One Finan… |
|---|---|---|
| RevenueTrailing 12 months | $3.0B | $53.9B |
| EBITDAEarnings before interest/tax | $824M | $6.1B |
| Net IncomeAfter-tax profit | $623M | $1.4B |
| Free Cash FlowCash after capex | -$333M | $20.8B |
| Gross MarginGross profit ÷ Revenue | +48.2% | +50.8% |
| Operating MarginEBIT ÷ Revenue | +26.7% | +11.0% |
| Net MarginNet income ÷ Revenue | +20.4% | +8.8% |
| FCF MarginFCF ÷ Revenue | -11.0% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +3.7% | +9.5% |
Valuation Metrics
At 7.0x trailing earnings, SLM trades at a 59% valuation discount to COF's 16.9x P/E. Adjusting for growth (PEG ratio), SLM offers better value at 0.47x vs COF's 10.08x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SLMSLM Corporation | COFCapital One Finan… |
|---|---|---|
| Market CapShares × price | $3.7B | $124.4B |
| Enterprise ValueMkt cap + debt − cash | $5.5B | $126.7B |
| Trailing P/EPrice ÷ TTM EPS | 6.99x | 16.88x |
| Forward P/EPrice ÷ next-FY EPS est. | 6.85x | 9.67x |
| PEG RatioP/E ÷ EPS growth rate | 0.47x | 10.08x |
| EV / EBITDAEnterprise value multiple | 6.70x | 13.85x |
| Price / SalesMarket cap ÷ Revenue | 1.25x | 2.31x |
| Price / BookPrice ÷ Book value/share | 1.91x | 1.23x |
| Price / FCFMarket cap ÷ FCF | — | 7.34x |
Profitability & Efficiency
SLM delivers a 26.6% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $1 for COF. COF carries lower financial leverage with a 0.75x debt-to-equity ratio, signaling a more conservative balance sheet compared to SLM's 2.98x. On the Piotroski fundamental quality scale (0–9), COF scores 5/9 vs SLM's 4/9, reflecting solid financial health.
| Metric | SLMSLM Corporation | COFCapital One Finan… |
|---|---|---|
| ROE (TTM)Return on equity | +26.6% | +1.2% |
| ROA (TTM)Return on assets | +2.1% | +0.2% |
| ROICReturn on invested capital | +7.6% | +4.1% |
| ROCEReturn on capital employed | +9.7% | +4.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 2.98x | 0.75x |
| Net DebtTotal debt minus cash | $1.7B | $2.3B |
| Cash & Equiv.Liquid assets | $4.7B | $43.2B |
| Total DebtShort + long-term debt | $6.4B | $45.6B |
| Interest CoverageEBIT ÷ Interest expense | 0.71x | 0.11x |
Total Returns (with DRIP)
A $10,000 investment in COF five years ago would be worth $16,819 today (with dividends reinvested), compared to $13,057 for SLM. Over the past 12 months, COF leads with a -1.1% total return vs SLM's -36.2%. The 3-year compound annual growth rate (CAGR) favors COF at 23.1% vs SLM's 11.9% — a key indicator of consistent wealth creation.
| Metric | SLMSLM Corporation | COFCapital One Finan… |
|---|---|---|
| YTD ReturnYear-to-date | -31.6% | -20.8% |
| 1-Year ReturnPast 12 months | -36.2% | -1.1% |
| 3-Year ReturnCumulative with dividends | +40.2% | +86.3% |
| 5-Year ReturnCumulative with dividends | +30.6% | +68.2% |
| 10-Year ReturnCumulative with dividends | +260.3% | +228.4% |
| CAGR (3Y)Annualised 3-year return | +11.9% | +23.1% |
Risk & Volatility
SLM is the less volatile stock with a 1.16 beta — it tends to amplify market swings less than COF's 1.53 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. COF currently trades 75.4% from its 52-week high vs SLM's 53.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SLMSLM Corporation | COFCapital One Finan… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.16x | 1.53x |
| 52-Week HighHighest price in past year | $34.97 | $259.64 |
| 52-Week LowLowest price in past year | $18.71 | $143.22 |
| % of 52W HighCurrent price vs 52-week peak | +53.6% | +75.4% |
| RSI (14)Momentum oscillator 0–100 | 30.7 | 45.1 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 4.5M |
Analyst Outlook
Wall Street rates SLM as "Buy" and COF as "Buy". Consensus price targets imply 69.9% upside for SLM (target: $32) vs 39.9% for COF (target: $274). For income investors, SLM offers the higher dividend yield at 2.41% vs COF's 1.24%.
| Metric | SLMSLM Corporation | COFCapital One Finan… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $31.83 | $273.62 |
| # AnalystsCovering analysts | 25 | 56 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +1.2% |
| Dividend StreakConsecutive years of raises | 6 | 2 |
| Dividend / ShareAnnual DPS | $0.45 | $2.43 |
| Buyback YieldShare repurchases ÷ mkt cap | +6.6% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | 100 | 249.09 | +149.1% |
| Capital One Financi… (COF) | 100 | 244.54 | +144.5% |
Capital One Financi… (COF) returned +68% over 5 years vs SLM Corporation (SLM)'s +31%. A $10,000 investment in COF 5 years ago would be worth $16,819 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | $1.0B | $3.0B | +194.7% |
| Capital One Financi… (COF) | $25.0B | $53.9B | +115.4% |
SLM Corporation's revenue grew from $1.0B (2015) to $3.0B (2024) — a 12.8% CAGR. Capital One Financial Corporation's revenue grew from $25.0B (2015) to $53.9B (2024) — a 8.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | 27.1% | 20.4% | -24.7% |
| Capital One Financi… (COF) | 16.2% | 8.8% | -45.6% |
SLM Corporation's net margin went from 27% (2015) to 20% (2024). Capital One Financial Corporation's net margin went from 16% (2015) to 9% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | 18.2 | 10.3 | -43.4% |
| Capital One Financi… (COF) | 28.5 | 15.4 | -46.0% |
SLM Corporation has traded in a 5x–18x P/E range over 8 years; current trailing P/E is ~7x. Capital One Financial Corporation has traded in a 5x–29x P/E range over 8 years; current trailing P/E is ~17x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | 0.59 | 2.68 | +354.2% |
| Capital One Financi… (COF) | 7.07 | 11.59 | +63.9% |
SLM Corporation's EPS grew from $0.59 (2015) to $2.68 (2024) — a 18% CAGR. Capital One Financial Corporation's EPS grew from $7.07 (2015) to $11.59 (2024) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
SLM Corporation generated $-329M FCF in 2024 (-565% vs 2021). Capital One Financial Corporation generated $17B FCF in 2024 (+46% vs 2021).
SLM vs COF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SLM or COF a better buy right now?
SLM Corporation (SLM) offers the better valuation at 7.0x trailing P/E (6.8x forward), making it the more compelling value choice. Analysts rate SLM Corporation (SLM) a "Buy" — based on 25 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — SLM or COF?
On trailing P/E, SLM Corporation (SLM) is the cheapest at 7.0x versus Capital One Financial Corporation at 16.9x. On forward P/E, SLM Corporation is actually cheaper at 6.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: SLM Corporation wins at 0.46x versus Capital One Financial Corporation's 10.08x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SLM or COF?
Over the past 5 years, Capital One Financial Corporation (COF) delivered a total return of +68.2%, compared to +30.6% for SLM Corporation (SLM). A $10,000 investment in COF five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SLM returned +260.3% versus COF's +228.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SLM or COF?
By beta (market sensitivity over 5 years), SLM Corporation (SLM) is the lower-risk stock at 1.16β versus Capital One Financial Corporation's 1.53β — meaning COF is approximately 32% more volatile than SLM relative to the S&P 500. On balance sheet safety, Capital One Financial Corporation (COF) carries a lower debt/equity ratio of 75% versus 3% for SLM Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — SLM or COF?
SLM Corporation (SLM) is the more profitable company, earning 20.4% net margin versus 8.8% for Capital One Financial Corporation — meaning it keeps 20.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SLM leads at 26.7% versus 11.0% for COF. At the gross margin level — before operating expenses — COF leads at 50.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is SLM or COF more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, SLM Corporation (SLM) is the more undervalued stock at a PEG of 0.46x versus Capital One Financial Corporation's 10.08x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, SLM Corporation (SLM) trades at 6.8x forward P/E versus 9.7x for Capital One Financial Corporation — 2.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SLM: 69.9% to $31.83.
07Which pays a better dividend — SLM or COF?
All stocks in this comparison pay dividends. SLM Corporation (SLM) offers the highest yield at 2.4%, versus 1.2% for Capital One Financial Corporation (COF).
08Is SLM or COF better for a retirement portfolio?
For long-horizon retirement investors, SLM Corporation (SLM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.16), 2.4% yield, +260.3% 10Y return). Capital One Financial Corporation (COF) carries a higher beta of 1.53 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SLM: +260.3%, COF: +228.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between SLM and COF?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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