Synchrony Financial (NYSE: SYF) and Stonegate Mortgage (NYSE:SGM) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
This is a summary of recent recommendations and price targets for Synchrony Financial and Stonegate Mortgage, as provided by MarketBeat.com.
||Strong Buy Ratings
Synchrony Financial currently has a consensus price target of $36.89, indicating a potential downside of 1.50%. Given Synchrony Financial’s higher probable upside, research analysts clearly believe Synchrony Financial is more favorable than Stonegate Mortgage.
This table compares Synchrony Financial and Stonegate Mortgage’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility and Risk
Synchrony Financial has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Stonegate Mortgage has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Insider & Institutional Ownership
85.8% of Synchrony Financial shares are held by institutional investors. Comparatively, 44.3% of Stonegate Mortgage shares are held by institutional investors. 0.0% of Synchrony Financial shares are held by insiders. Comparatively, 44.5% of Stonegate Mortgage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Synchrony Financial and Stonegate Mortgage’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
Synchrony Financial has higher revenue and earnings than Stonegate Mortgage. Stonegate Mortgage is trading at a lower price-to-earnings ratio than Synchrony Financial, indicating that it is currently the more affordable of the two stocks.
Synchrony Financial pays an annual dividend of $0.60 per share and has a dividend yield of 1.6%. Stonegate Mortgage does not pay a dividend. Synchrony Financial pays out 22.8% of its earnings in the form of a dividend.
Synchrony Financial beats Stonegate Mortgage on 10 of the 13 factors compared between the two stocks.
About Synchrony Financial
Synchrony Financial is a consumer financial services company. The Company provides a range of credit products through programs it has established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. The Company’s revenue activities are managed through three sales platforms: Retail Card, Payment Solutions and CareCredit. It offers its credit products through its subsidiary, Synchrony Bank (the Bank). Through the Bank, it offers a range of deposit products insured by the Federal Deposit Insurance Corporation (FDIC), including certificates of deposit, individual retirement accounts (IRAs), money market accounts and savings accounts. The Company offers three types of credit products: credit cards, commercial credit products and consumer installment loans. The Company also offers a debt cancellation product. It offers two types of credit cards: private label credit cards and Dual Cards.
About Stonegate Mortgage
Stonegate Mortgage Corporation is a non-bank mortgage company. The Company is focused on originating, financing and servicing the United States residential mortgage loans. The Company’s segments include Originations, Servicing, Financing and Other. The Originations segment primarily originates and sells residential mortgage loans, which conform to the underwriting guidelines of the government sponsored enterprises and government agencies, and non-agency whole loan investors. The Servicing segment includes loan administration, collection and default activities, including the collection and remittance of loan payments, responding to customer inquiries, collection of principal and interest payments, holding custodial funds for the payment of property taxes and insurance premiums, counseling delinquent mortgagors and modifying loans. The Financing segment includes warehouse-lending activities to correspondent customers by the Company’s subsidiary, NattyMac, LLC.
Receive News & Ratings for Synchrony Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Synchrony Financial and related companies with MarketBeat.com's FREE daily email newsletter.