Comprehensive Stock Comparison
Compare Navient Corporation (NAVI) vs SLM Corporation (SLM) 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 | SLM | 5.2% revenue growth vs NAVI's -12.4% |
| Value | SLM | Lower P/E (6.8x vs 12.7x) |
| Quality / Margins | SLM | 20.4% net margin vs NAVI's 3.1% |
| Stability / Safety | NAVI | Beta 1.08 vs SLM's 1.16 |
| Dividends | NAVI | 7.2% yield, vs SLM's 2.4% |
| Momentum (1Y) | NAVI | -34.1% vs SLM's -36.2% |
| Efficiency (ROA) | SLM | 2.1% ROA vs NAVI's -0.1%, ROIC 7.6% vs 0.2% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Navient is a financial services company that manages education loans and provides business processing solutions for education, healthcare, and government clients. It makes money primarily through loan servicing fees and interest income from its education loan portfolio—including federally guaranteed FFELP loans and private student loans—along with business processing fees from healthcare and government clients. The company's key advantage is its specialized expertise in complex education loan servicing and its established relationships with federal and state government agencies.
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.
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). NAVI leads in 1 (Risk & Volatility). 1 tied.
Financial Metrics (TTM)
NAVI and SLM operate at a comparable scale, with $4.2B and $3.0B in trailing revenue. SLM is the more profitable business, keeping 20.4% of every revenue dollar as net income compared to NAVI's 3.1%.
| Metric | NAVINavient Corporati… | SLMSLM Corporation |
|---|---|---|
| RevenueTrailing 12 months | $4.2B | $3.0B |
| EBITDAEarnings before interest/tax | -$77M | $824M |
| Net IncomeAfter-tax profit | -$50M | $623M |
| Free Cash FlowCash after capex | $275M | -$333M |
| Gross MarginGross profit ÷ Revenue | +20.0% | +48.2% |
| Operating MarginEBIT ÷ Revenue | +4.1% | +26.7% |
| Net MarginNet income ÷ Revenue | +3.1% | +20.4% |
| FCF MarginFCF ÷ Revenue | +10.8% | -11.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -46.0% | +3.7% |
Valuation Metrics
At 7.0x trailing earnings, SLM trades at a 6% valuation discount to NAVI's 7.4x P/E. On an enterprise value basis, SLM's 6.7x EV/EBITDA is more attractive than NAVI's 280.4x.
| Metric | NAVINavient Corporati… | SLMSLM Corporation |
|---|---|---|
| Market CapShares × price | $841M | $3.7B |
| Enterprise ValueMkt cap + debt − cash | $48.8B | $5.5B |
| Trailing P/EPrice ÷ TTM EPS | 7.45x | 6.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.67x | 6.85x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.47x |
| EV / EBITDAEnterprise value multiple | 280.37x | 6.70x |
| Price / SalesMarket cap ÷ Revenue | 0.20x | 1.25x |
| Price / BookPrice ÷ Book value/share | 0.37x | 1.91x |
| Price / FCFMarket cap ÷ FCF | 1.83x | — |
Profitability & Efficiency
SLM delivers a 26.6% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $-2 for NAVI. SLM carries lower financial leverage with a 2.98x debt-to-equity ratio, signaling a more conservative balance sheet compared to NAVI's 18.43x. On the Piotroski fundamental quality scale (0–9), NAVI scores 6/9 vs SLM's 4/9, reflecting solid financial health.
| Metric | NAVINavient Corporati… | SLMSLM Corporation |
|---|---|---|
| ROE (TTM)Return on equity | -2.1% | +26.6% |
| ROA (TTM)Return on assets | -0.1% | +2.1% |
| ROICReturn on invested capital | +0.2% | +7.6% |
| ROCEReturn on capital employed | +0.3% | +9.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 18.43x | 2.98x |
| Net DebtTotal debt minus cash | $47.9B | $1.7B |
| Cash & Equiv.Liquid assets | $722M | $4.7B |
| Total DebtShort + long-term debt | $48.7B | $6.4B |
| Interest CoverageEBIT ÷ Interest expense | -0.03x | 0.71x |
Total Returns (with DRIP)
A $10,000 investment in SLM five years ago would be worth $13,057 today (with dividends reinvested), compared to $9,202 for NAVI. Over the past 12 months, NAVI leads with a -34.1% total return vs SLM's -36.2%. The 3-year compound annual growth rate (CAGR) favors SLM at 11.9% vs NAVI's -16.0% — a key indicator of consistent wealth creation.
| Metric | NAVINavient Corporati… | SLMSLM Corporation |
|---|---|---|
| YTD ReturnYear-to-date | -31.2% | -31.6% |
| 1-Year ReturnPast 12 months | -34.1% | -36.2% |
| 3-Year ReturnCumulative with dividends | -40.7% | +40.2% |
| 5-Year ReturnCumulative with dividends | -8.0% | +30.6% |
| 10-Year ReturnCumulative with dividends | +40.3% | +260.3% |
| CAGR (3Y)Annualised 3-year return | -16.0% | +11.9% |
Risk & Volatility
NAVI is the less volatile stock with a 1.08 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.
| Metric | NAVINavient Corporati… | SLMSLM Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.08x | 1.16x |
| 52-Week HighHighest price in past year | $16.07 | $34.97 |
| 52-Week LowLowest price in past year | $8.50 | $18.71 |
| % of 52W HighCurrent price vs 52-week peak | +54.7% | +53.6% |
| RSI (14)Momentum oscillator 0–100 | 27.1 | 30.7 |
| Avg Volume (50D)Average daily shares traded | 827K | 2.4M |
Analyst Outlook
Wall Street rates NAVI as "Hold" and SLM as "Buy". Consensus price targets imply 69.9% upside for SLM (target: $32) vs 13.8% for NAVI (target: $10). For income investors, NAVI offers the higher dividend yield at 7.17% vs SLM's 2.41%.
| Metric | NAVINavient Corporati… | SLMSLM Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $10.00 | $31.83 |
| # AnalystsCovering analysts | 24 | 25 |
| Dividend YieldAnnual dividend ÷ price | +7.2% | +2.4% |
| Dividend StreakConsecutive years of raises | 0 | 6 |
| Dividend / ShareAnnual DPS | $0.63 | $0.45 |
| Buyback YieldShare repurchases ÷ mkt cap | +21.3% | +6.6% |
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 |
|---|---|---|---|
| Navient Corporation (NAVI) | 100 | 86.18 | -13.8% |
| SLM Corporation (SLM) | 100 | 249.09 | +149.1% |
SLM Corporation (SLM) returned +31% over 5 years vs Navient Corporation (NAVI)'s -8%. A $10,000 investment in SLM 5 years ago would be worth $13,057 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Navient Corporation (NAVI) | $5.2B | $4.2B | -18.2% |
| SLM Corporation (SLM) | $1.0B | $3.0B | +194.7% |
Navient Corporation's revenue grew from $5.2B (2015) to $4.2B (2024) — a -2.2% CAGR. SLM Corporation's revenue grew from $1.0B (2015) to $3.0B (2024) — a 12.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Navient Corporation (NAVI) | 19.0% | 3.1% | -83.7% |
| SLM Corporation (SLM) | 27.1% | 20.4% | -24.7% |
Navient Corporation's net margin went from 19% (2015) to 3% (2024). SLM Corporation's net margin went from 27% (2015) to 20% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Navient Corporation (NAVI) | 12.8 | 11.3 | -11.7% |
| SLM Corporation (SLM) | 18.2 | 10.3 | -43.4% |
Navient Corporation has traded in a 4x–13x P/E range over 8 years; current trailing P/E is ~7x. SLM Corporation has traded in a 5x–18x P/E range over 8 years; current trailing P/E is ~7x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Navient Corporation (NAVI) | 2.61 | 1.18 | -54.8% |
| SLM Corporation (SLM) | 0.59 | 2.68 | +354.2% |
Navient Corporation's EPS grew from $2.61 (2015) to $1.18 (2024) — a -8% CAGR. SLM Corporation's EPS grew from $0.59 (2015) to $2.68 (2024) — a 18% CAGR.
Chart 6Free Cash Flow — 5 Years
Navient Corporation generated $459M FCF in 2024 (-35% vs 2021). SLM Corporation generated $-329M FCF in 2024 (-565% vs 2021).
NAVI vs SLM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NAVI or SLM 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 — NAVI or SLM?
On trailing P/E, SLM Corporation (SLM) is the cheapest at 7.0x versus Navient Corporation at 7.4x. On forward P/E, SLM Corporation is actually cheaper at 6.8x.
03Which is the better long-term investment — NAVI or SLM?
Over the past 5 years, SLM Corporation (SLM) delivered a total return of +30.6%, compared to -8.0% for Navient Corporation (NAVI). A $10,000 investment in SLM five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SLM returned +260.3% versus NAVI's +40.3%. 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 — NAVI or SLM?
By beta (market sensitivity over 5 years), Navient Corporation (NAVI) is the lower-risk stock at 1.08β versus SLM Corporation's 1.16β — meaning SLM is approximately 7% more volatile than NAVI relative to the S&P 500. On balance sheet safety, SLM Corporation (SLM) carries a lower debt/equity ratio of 3% versus 18% for Navient Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — NAVI or SLM?
SLM Corporation (SLM) is the more profitable company, earning 20.4% net margin versus 3.1% for Navient 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 4.1% for NAVI. At the gross margin level — before operating expenses — SLM leads at 48.2%, 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 NAVI or SLM more undervalued right now?
On forward earnings alone, SLM Corporation (SLM) trades at 6.8x forward P/E versus 12.7x for Navient Corporation — 5.8x 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 — NAVI or SLM?
All stocks in this comparison pay dividends. Navient Corporation (NAVI) offers the highest yield at 7.2%, versus 2.4% for SLM Corporation (SLM).
08Is NAVI or SLM 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). Both have compounded well over 10 years (SLM: +260.3%, NAVI: +40.3%), 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 NAVI and SLM?
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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