WallStSmart

Capital One Financial Corporation (COF)vsSLM Corp Pb Pref (SLMBP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Capital One Financial Corporation generates 1885% more annual revenue ($32.78B vs $1.65B). SLMBP leads profitability with a 45.1% profit margin vs 7.5%. SLMBP trades at a lower P/E of 35.0x. COF earns a higher WallStSmart Score of 75/100 (B+).

COF

Strong Buy

75

out of 100

Grade: B+

Growth: 9.3Profit: 5.0Value: 4.7Quality: 5.0

SLMBP

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 8.5Value: 7.7Quality: 5.5
Piotroski: 6/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COFSignificantly Overvalued (-50.8%)

Margin of Safety

-50.8%

Fair Value

$142.20

Current Price

$185.23

$43.03 premium

UndervaluedFair: $142.20Overvalued
SLMBPUndervalued (+24.6%)

Margin of Safety

+24.6%

Fair Value

$100.39

Current Price

$74.50

$25.89 discount

UndervaluedFair: $100.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COF6 strengths · Avg: 9.2/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
51.6%10/10

Revenue surging 51.6% year-over-year

Market CapQuality
$112.86B9/10

Large-cap with strong market position

Operating MarginProfitability
22.9%8/10

Strong operational efficiency at 22.9%

EPS GrowthGrowth
22.2%8/10

Earnings expanding 22.2% YoY

SLMBP5 strengths · Avg: 10.0/10
Return on EquityProfitability
32.3%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
66.8%10/10

Strong operational efficiency at 66.8%

Revenue GrowthGrowth
67.8%10/10

Revenue surging 67.8% year-over-year

EPS GrowthGrowth
126.2%10/10

Earnings expanding 126.2% YoY

Areas to Watch

COF3 concerns · Avg: 2.7/10
Return on EquityProfitability
2.4%3/10

ROE of 2.4% — below average capital efficiency

Profit MarginProfitability
7.5%3/10

7.5% margin — thin

P/E RatioValuation
54.0x2/10

Premium valuation, high expectations priced in

SLMBP3 concerns · Avg: 2.3/10
P/E RatioValuation
35.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.632/10

Distress zone — elevated risk

Debt/EquityHealth
2.391/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : COF

The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 51.6% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.

Bull Case : SLMBP

The strongest argument for SLMBP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 45.1% and operating margin at 66.8%. Revenue growth of 67.8% demonstrates continued momentum.

Bear Case : COF

The primary concerns for COF are Return on Equity, Profit Margin, P/E Ratio. A P/E of 54.0x leaves little room for execution misses.

Bear Case : SLMBP

The primary concerns for SLMBP are P/E Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

COF profiles as a hypergrowth stock while SLMBP is a growth play — different risk/reward profiles.

SLMBP carries more volatility with a beta of 1.16 — expect wider price swings.

SLMBP is growing revenue faster at 67.8% — sustainability is the question.

COF generates stronger free cash flow (6.7B), providing more financial flexibility.

Bottom Line

COF scores higher overall (75/100 vs 68/100) and 51.6% revenue growth. SLMBP offers better value entry with a 24.6% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Capital One Financial Corporation

FINANCIAL SERVICES · CREDIT SERVICES · USA

Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.

SLM Corp Pb Pref

FINANCIAL SERVICES · CREDIT SERVICES · USA

SLM Corporation originates and provides private education loan services to students and their families to finance the cost of their education in the United States. The company is headquartered in Newark, Delaware.

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