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SLM vs TCBI

SLM
SLM Corporation
NEUTRAL
Price
$22.64
Market Cap
$4.49B
Sector
Financial Services
AI Confidence
85%
TCBI
Texas Capital Bancshares, Inc.
BULLISH
Price
$105.75
Market Cap
$4.68B
Sector
Financial Services
AI Confidence
75%

Valuation

P/E Ratio
SLM
6.54
TCBI
15.39
Forward P/E
SLM
6.96
TCBI
12.45
P/B Ratio
SLM
2.05
TCBI
1.4
P/S Ratio
SLM
2.72
TCBI
3.89
EV/EBITDA
SLM
--
TCBI
--

Profitability

Gross Margin
SLM
100.0%
TCBI
0.0%
Operating Margin
SLM
66.82%
TCBI
42.52%
Profit Margin
SLM
45.1%
TCBI
27.5%
ROE
SLM
32.3%
TCBI
9.44%
ROA
SLM
2.49%
TCBI
1.06%

Growth

Revenue Growth
SLM
67.8%
TCBI
19.1%
Earnings Growth
SLM
126.2%
TCBI
49.0%

Financial Health

Debt/Equity
SLM
2.4
TCBI
--
Current Ratio
SLM
1.28
TCBI
--
Quick Ratio
SLM
1.23
TCBI
--

Dividends

Dividend Yield
SLM
2.3%
TCBI
--
Payout Ratio
SLM
15.03%
TCBI
0.0%

AI Verdict

SLM NEUTRAL

SLM presents a stark contradiction between explosive growth and deteriorating financial health, highlighted by a weak Piotroski F-Score of 2/9. While the stock is fundamentally undervalued with a P/E of 6.54 and trades below its Graham Number of $29.32, the low health score and bearish technical trend (0/100) suggest a potential value trap. Exceptional YoY earnings growth of 126.20% is offset by a high Debt/Equity ratio of 2.40 and a poor recent track record of earnings surprises. The discrepancy between the current price and the growth-based intrinsic value ($102.07) reflects significant market skepticism regarding the sustainability of its current trajectory.

Strengths
Extremely low P/E ratio (6.54) relative to sector average
Strong PEG ratio (0.51) indicating significant undervaluation relative to growth
Explosive YoY Revenue (67.8%) and Earnings (126.2%) growth
Risks
Critical financial health warning via Piotroski F-Score (2/9)
High leverage with a Debt/Equity ratio of 2.40
Strongly bearish technical trend (0/100)
TCBI BULLISH

TCBI presents a compelling growth story with a Piotroski F-Score of 4/9, indicating stable financial health. The stock is currently trading slightly below its Graham Number ($107.87), suggesting a defensive fair value, while its intrinsic value ($202.66) points to significant long-term upside driven by explosive earnings growth. Despite a bearish technical trend score, the actual price performance is strongly positive, and recent quarterly earnings beats (3 of last 4) underscore a powerful recovery phase.

Strengths
Exceptional earnings growth (YoY +49.00%)
Strong recent earnings track record with an average surprise of 22.46%
Trading at a reasonable P/E (15.39) and below the Graham Number
Risks
Piotroski F-Score of 4/9 suggests only 'stable' rather than 'strong' health
High historical earnings volatility (e.g., -249.3% surprise in Oct 2024)
Complete lack of dividend yield for income-seeking investors

Compare Another Pair

SLM vs TCBI: Head-to-Head Comparison

This page compares SLM Corporation (SLM) and Texas Capital Bancshares, Inc. (TCBI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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