Sallie Mae vs Enact

Sallie Mae vs Enact: this page compares their business models, financial performance, and market context in a clear, neutral way. It describes how each company operates, generates revenue, and sits within the broader loan and servicing landscape, without favour or endorsement. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

SLM

Metric

ACT

$5.28B

Market Cap

$5.55B

20.39%

Potential Profit

-0.06%

Buy

Analyst Rating

Buy

Investment Analysis

Sallie Mae

SLM

Pros

Sallie Mae reported strong credit performance with lower net charge-offs and stabilised delinquency rates in Q3 2025.
The company achieved 9% year-on-year growth in average private education loans outstanding, supporting revenue expansion.
Sallie Mae returned significant capital to shareholders, repurchasing 5.6 million shares for $166 million in Q3 2025.

Considerations

Q3 2025 GAAP earnings per share were 20.8% below analyst consensus, reflecting weaker-than-expected profitability.
Revenue growth has been volatile, with recent quarters missing market expectations despite year-on-year sales increases.
The business remains highly sensitive to student loan demand and broader economic conditions affecting higher education financing.

Enact

ACT

Pros

Enact Holdings maintains a leading position in the US private mortgage insurance market, benefiting from strong industry tailwinds.
The company has demonstrated robust capital generation and efficient underwriting, supporting consistent profitability.
Enact has expanded its product offerings and digital capabilities, enhancing customer reach and operational efficiency.

Considerations

Enact's earnings are closely tied to US housing market cycles, exposing it to downturns in home sales and refinancing activity.
Regulatory changes and increased competition in the mortgage insurance sector could pressure future margins.
The company faces risks from elevated home price volatility and potential increases in mortgage defaults during economic stress.

About The Companies

Sallie Mae (SLM)

SLM Corporation, widely known by its brand name Sallie Mae, is a US-based financial services company focused on higher education. Its principal business involves originating and servicing private education loans for students and their families. The company's flagship product, the Smart Option Student Loan, is designed to help borrowers reduce their total loan costs through features like in-school payments. Beyond general student loans, Sallie Mae also offers specialised loan products for specific graduate programmes, such as law, medicine, and business. In addition to its lending activities, the company provides a selection of savings and deposit products, which are insured by the Federal Deposit Insurance Corporation (FDIC). This dual focus on lending and saving makes it a significant entity in the American education finance landscape. As with any investment, its value can go down as well as up.

Enact (ACT)

Enact Holdings, Inc. is a prominent American company operating in the private mortgage insurance sector. Through its primary subsidiary, Enact Mortgage Insurance Corporation, it provides insurance that protects lenders and investors from losses if a borrower defaults on their home loan. This service is crucial as it helps facilitate the sale of mortgages in the secondary market to key institutions like Fannie Mae and Freddie Mac. Enact serves a diverse customer base, including national banks, local credit unions, and non-bank mortgage lenders, establishing long-standing relationships across the industry. As a key player in the US housing finance system, the company's performance is closely linked to the health of the residential property market. For investors, understanding Enact means looking at its role in enabling homeownership and the economic factors that influence the mortgage industry. Remember, the value of any investment can go down as well as up.

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Sallie Mae vs Enact

Comparison Snapshot

Investment Analysis

Sallie Mae

Pros

Considerations

Enact

Pros

Considerations

About The Companies

Buy SLM or ACT in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Sallie Mae vs Home BancShares

Sallie Mae vs Virtu

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Frequently asked questions

What is the basic business model of Sallie Mae (SLM) compared with Enact (Enact Holdings, Inc.)?

How do revenue drivers differ between the two companies?

What does a high or rising charge-off rate signal for Sallie Mae?

How should one interpret Enact’s profitability and its exposure to housing cycles?

What is meant by capital return in the context of Sallie Mae’s performance?

What market conditions most influence Sallie Mae’s business outlook?

What market dynamics affect Enact’s business prospects?

How can one compare volatility between Sallie Mae and Enact?

What indicators should beginners look at beyond earnings per share?

Why is comparing a loan-focused business to an insurance-focused business helpful for learners?

What is an educational disclaimer about using this page for decisions?

Comparison Snapshot

About The Companies