Comprehensive Stock Comparison
Compare SLM Corporation (SLM) vs Mastercard Incorporated (MA) 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 | MA | 16.4% revenue growth vs SLM's 5.2% |
| Value | SLM | Lower P/E (6.8x vs 26.4x), PEG 0.46 vs 1.26 |
| Quality / Margins | MA | 45.6% net margin vs SLM's 20.4% |
| Stability / Safety | MA | Beta 0.78 vs SLM's 1.16, lower leverage |
| Dividends | SLM | 2.4% yield, 6-year raise streak, vs MA's 0.6% |
| Momentum (1Y) | MA | -9.7% vs SLM's -36.2% |
| Efficiency (ROA) | MA | 27.6% ROA vs SLM's 2.1%, ROIC 56.5% vs 7.6% |
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.
Mastercard is a global payment technology company that operates a network connecting consumers, merchants, financial institutions, and governments. It generates revenue primarily from transaction processing fees—charging a small percentage of each payment volume—and from service fees for its data analytics, consulting, and security solutions. The company's moat lies in its massive two-sided network effect—the more merchants accept Mastercard, the more valuable it becomes to cardholders, and vice versa—creating a powerful ecosystem that's difficult to replicate.
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
MA leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). SLM leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
MA is the larger business by revenue, generating $32.8B annually — 11.0x SLM's $3.0B. MA is the more profitable business, keeping 45.6% of every revenue dollar as net income compared to SLM's 20.4%.
| Metric | SLMSLM Corporation | MAMastercard Incorp… |
|---|---|---|
| RevenueTrailing 12 months | $3.0B | $32.8B |
| EBITDAEarnings before interest/tax | $824M | $20.5B |
| Net IncomeAfter-tax profit | $623M | $15.0B |
| Free Cash FlowCash after capex | -$333M | $17.1B |
| Gross MarginGross profit ÷ Revenue | +48.2% | +83.4% |
| Operating MarginEBIT ÷ Revenue | +26.7% | +59.2% |
| Net MarginNet income ÷ Revenue | +20.4% | +45.6% |
| FCF MarginFCF ÷ Revenue | -11.0% | +52.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +3.7% | +24.2% |
Valuation Metrics
At 7.0x trailing earnings, SLM trades at a 78% valuation discount to MA's 31.3x P/E. Adjusting for growth (PEG ratio), SLM offers better value at 0.47x vs MA's 1.49x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SLMSLM Corporation | MAMastercard Incorp… |
|---|---|---|
| Market CapShares × price | $3.7B | $457.8B |
| Enterprise ValueMkt cap + debt − cash | $5.5B | $465.7B |
| Trailing P/EPrice ÷ TTM EPS | 6.99x | 31.31x |
| Forward P/EPrice ÷ next-FY EPS est. | 6.85x | 26.43x |
| PEG RatioP/E ÷ EPS growth rate | 0.47x | 1.49x |
| EV / EBITDAEnterprise value multiple | 6.70x | 22.67x |
| Price / SalesMarket cap ÷ Revenue | 1.25x | 13.96x |
| Price / BookPrice ÷ Book value/share | 1.91x | 59.96x |
| Price / FCFMarket cap ÷ FCF | — | 26.68x |
Profitability & Efficiency
MA delivers a 193.0% return on equity — every $100 of shareholder capital generates $193 in annual profit, vs $27 for SLM. MA carries lower financial leverage with a 2.45x debt-to-equity ratio, signaling a more conservative balance sheet compared to SLM's 2.98x. On the Piotroski fundamental quality scale (0–9), MA scores 9/9 vs SLM's 4/9, reflecting strong financial health.
| Metric | SLMSLM Corporation | MAMastercard Incorp… |
|---|---|---|
| ROE (TTM)Return on equity | +26.6% | +193.0% |
| ROA (TTM)Return on assets | +2.1% | +27.6% |
| ROICReturn on invested capital | +7.6% | +56.5% |
| ROCEReturn on capital employed | +9.7% | +64.4% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 9 |
| Debt / EquityFinancial leverage | 2.98x | 2.45x |
| Net DebtTotal debt minus cash | $1.7B | $7.9B |
| Cash & Equiv.Liquid assets | $4.7B | $11.1B |
| Total DebtShort + long-term debt | $6.4B | $19.0B |
| Interest CoverageEBIT ÷ Interest expense | 0.71x | 26.39x |
Total Returns (with DRIP)
A $10,000 investment in MA five years ago would be worth $14,586 today (with dividends reinvested), compared to $13,057 for SLM. Over the past 12 months, MA leads with a -9.7% total return vs SLM's -36.2%. The 3-year compound annual growth rate (CAGR) favors MA at 13.9% vs SLM's 11.9% — a key indicator of consistent wealth creation.
| Metric | SLMSLM Corporation | MAMastercard Incorp… |
|---|---|---|
| YTD ReturnYear-to-date | -31.6% | -8.0% |
| 1-Year ReturnPast 12 months | -36.2% | -9.7% |
| 3-Year ReturnCumulative with dividends | +40.2% | +47.9% |
| 5-Year ReturnCumulative with dividends | +30.6% | +45.9% |
| 10-Year ReturnCumulative with dividends | +260.3% | +515.7% |
| CAGR (3Y)Annualised 3-year return | +11.9% | +13.9% |
Risk & Volatility
MA is the less volatile stock with a 0.78 beta — it tends to amplify market swings less than SLM's 1.16 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MA currently trades 85.9% 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 | MAMastercard Incorp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.16x | 0.78x |
| 52-Week HighHighest price in past year | $34.97 | $601.77 |
| 52-Week LowLowest price in past year | $18.71 | $465.59 |
| % of 52W HighCurrent price vs 52-week peak | +53.6% | +85.9% |
| RSI (14)Momentum oscillator 0–100 | 30.7 | 42.8 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 3.2M |
Analyst Outlook
Wall Street rates SLM as "Buy" and MA as "Buy". Consensus price targets imply 69.9% upside for SLM (target: $32) vs 29.0% for MA (target: $667). For income investors, SLM offers the higher dividend yield at 2.41% vs MA's 0.59%.
| Metric | SLMSLM Corporation | MAMastercard Incorp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $31.83 | $667.00 |
| # AnalystsCovering analysts | 25 | 63 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +0.6% |
| Dividend StreakConsecutive years of raises | 6 | 14 |
| Dividend / ShareAnnual DPS | $0.45 | $3.07 |
| Buyback YieldShare repurchases ÷ mkt cap | +6.6% | +2.6% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | 100 | 249.09 | +149.1% |
| Mastercard Incorpor… (MA) | 100 | 181.06 | +81.1% |
Mastercard Incorpor… (MA) returned +46% over 5 years vs SLM Corporation (SLM)'s +31%. A $10,000 investment in MA 5 years ago would be worth $14,586 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | $1.1B | $3.0B | +160.7% |
| Mastercard Incorpor… (MA) | $10.8B | $32.8B | +204.3% |
Mastercard Incorporated's revenue grew from $10.8B (2016) to $32.8B (2025) — a 13.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | 21.8% | 20.4% | -6.8% |
| Mastercard Incorpor… (MA) | 37.7% | 45.6% | +21.2% |
Mastercard Incorporated's net margin went from 38% (2016) to 46% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | 18.2 | 10.3 | -43.4% |
| Mastercard Incorpor… (MA) | 41.5 | 34.6 | -16.6% |
SLM Corporation has traded in a 5x–18x P/E range over 8 years; current trailing P/E is ~7x. Mastercard Incorporated has traded in a 34x–56x P/E range over 9 years; current trailing P/E is ~31x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| SLM Corporation (SLM) | 0.53 | 2.68 | +405.7% |
| Mastercard Incorpor… (MA) | 3.69 | 16.52 | +347.7% |
Mastercard Incorporated's EPS grew from $3.69 (2016) to $16.52 (2025) — a 18% CAGR.
Chart 6Free Cash Flow — 5 Years
SLM Corporation generated $-329M FCF in 2024 (-565% vs 2021). Mastercard Incorporated generated $17B FCF in 2025 (+98% vs 2021).
SLM vs MA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SLM or MA 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 MA?
On trailing P/E, SLM Corporation (SLM) is the cheapest at 7.0x versus Mastercard Incorporated at 31.3x. 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 Mastercard Incorporated's 1.26x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SLM or MA?
Over the past 5 years, Mastercard Incorporated (MA) delivered a total return of +45.9%, compared to +30.6% for SLM Corporation (SLM). A $10,000 investment in MA five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MA returned +515.7% versus SLM's +260.3%. 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 MA?
By beta (market sensitivity over 5 years), Mastercard Incorporated (MA) is the lower-risk stock at 0.78β versus SLM Corporation's 1.16β — meaning SLM is approximately 49% more volatile than MA relative to the S&P 500. On balance sheet safety, Mastercard Incorporated (MA) carries a lower debt/equity ratio of 2% versus 3% for SLM Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — SLM or MA?
Mastercard Incorporated (MA) is the more profitable company, earning 45.6% net margin versus 20.4% for SLM Corporation — meaning it keeps 45.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MA leads at 59.2% versus 26.7% for SLM. At the gross margin level — before operating expenses — MA leads at 83.4%, 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 MA 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 Mastercard Incorporated's 1.26x. 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 26.4x for Mastercard Incorporated — 19.6x 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 MA?
All stocks in this comparison pay dividends. SLM Corporation (SLM) offers the highest yield at 2.4%, versus 0.6% for Mastercard Incorporated (MA).
08Is SLM or MA better for a retirement portfolio?
For long-horizon retirement investors, Mastercard Incorporated (MA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.78), 0.6% yield, +515.7% 10Y return). Both have compounded well over 10 years (MA: +515.7%, SLM: +260.3%), 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 MA?
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. In terms of investment character: SLM is a small-cap deep-value stock; MA is a large-cap quality compounder stock. 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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