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OMF vs. SLM: Which Stock Is the Better Value Option?
ZACKSยท2025-09-10 16:40

Core Viewpoint - OneMain Holdings (OMF) is currently viewed as a more attractive investment option compared to Sallie Mae (SLM) for value investors based on various financial metrics and rankings [1][3][7] Valuation Metrics - OMF has a forward P/E ratio of 9.60, while SLM has a slightly higher forward P/E of 9.61 [5] - The PEG ratio for OMF is 0.47, indicating better expected EPS growth relative to its price compared to SLM's PEG ratio of 0.84 [5] - OMF's P/B ratio stands at 2.19, which is lower than SLM's P/B ratio of 2.93, suggesting OMF is more favorably valued in terms of market value versus book value [6] Earnings Outlook - OMF holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook with recent revisions to earnings estimates, while SLM has a Zacks Rank of 3 (Hold) [3][7] - The stronger estimate revision activity for OMF further supports its position as a superior choice for value investors [7] Value Grades - OMF has received a Value grade of A, while SLM has a Value grade of C, reflecting OMF's more attractive valuation metrics [6]