OMF or SLM: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Financial - Consumer Loans sector should consider OneMain Holdings (OMF) and Sallie Mae (SLM) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - OneMain Holdings has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Sallie Mae has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting that OMF has an improving earnings outlook [3] Group 2: Valuation Metrics - OMF has a forward P/E ratio of 8.81, while SLM has a forward P/E of 8.84, indicating that both stocks are similarly valued in terms of earnings [5] - OMF's PEG ratio is 0.43, compared to SLM's PEG ratio of 0.77, suggesting OMF may offer better value considering expected earnings growth [5] - OMF's P/B ratio is 2.01, while SLM's P/B ratio is 2.69, further indicating that OMF is relatively undervalued compared to SLM [6] Group 3: Value Grades - OMF has a Value grade of A, while SLM has a Value grade of C, highlighting OMF's stronger position in terms of value metrics [6] - The combination of Zacks Rank and Style Scores suggests that OMF is the preferred choice for value investors over SLM [6]