Credit Acceptance Corporation (CACC) vs SLM Corporation (SLM)

Credit Acceptance Corporation and SLM Corporation are both Credit Services companies. Credit Acceptance Corporation is the larger, with a market value of $5.3B against $3.2B — 1.7× the size. SLM Corporation trades at the lower P/E: 6.3× against 16.7×. Credit Acceptance Corporation grew revenue faster over the last twelve months: 1.68% against −5.69%. SLM Corporation has the higher net margin (19.1% vs 14.4%) and the higher return on invested capital (8.72% vs 7.81%). Across the 19 metrics below, Credit Acceptance Corporation leads on 10 and SLM Corporation on 9.

Valuation

Metric CACC SLM Credit Services median
P/E 16.67 6.27 8.96
P/S 2.32 1.13 1.00
P/B 3.92 1.63 1.23
Price to free cash flow 4.33 n/m 2.55
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 6.00% 15.95% 7.17%
Free cash flow yield 23.08% (11.71%) 11.75%

Profitability

Metric CACC SLM Credit Services median
Gross margin 100.00% 61.95% 76.61%
Operating margin 39.82% 0.00% 0.34%
Net margin 14.39% 19.12% 8.35%
Free cash flow margin 53.65% (13.20%) 8.73%
Return on equity 22.72% 27.00% 9.05%
Return on assets 3.85% 1.86% 1.94%
Return on invested capital 7.81% 8.72% 4.56%

Growth

Metric CACC SLM Credit Services median
Revenue growth (TTM) 1.68% (5.69%) 4.49%
EPS growth (last fiscal year) 83.60% 29.10% 21.94%
Revenue growth, 5-year CAGR 6.78% 5.73% 9.22%
Net income growth, 5-year CAGR 0.14% (3.49%) 0.00%

Health

Metric CACC SLM Credit Services median
Debt to equity 4.84 2.45 0.69
Current ratio 13.49 1.23 1.26
Net debt to EBITDA 5.10 0.00 0.11

Dividend

Metric CACC SLM Credit Services median
Dividend yield — 2.96% 1.64%
Payout ratio — 0.19 0.21

Size

Metric CACC SLM Credit Services median
Market cap 5.30b 3.20b 759.73m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack