Sunlight Financial (NYSE: SUNL – Get an assessment) and Synchrony Financial (NYSE: SYF – Get an assessment) are both business services companies, but which is the better action? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.
This is a summary of the current ratings and target prices for Sunlight Financial and Synchrony Financial, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
Sunlight Financial currently has a consensus price target of $7.00, indicating a potential upside of 57.30%. Synchrony Financial has a consensus price target of $44.88, indicating a potential upside of 25.52%. Given Sunlight Financial’s stronger consensus rating and higher likely upside, stock analysts clearly believe that Sunlight Financial is more favorable than Synchrony Financial.
Risk and Volatility
Sunlight Financial has a beta of 1.99, indicating its stock price is 99% more volatile than the S&P 500. In comparison, Synchrony Financial has a beta of 1.57, indicating its stock price is 57% more volatile than the S&P 500.
This table compares the net margins, return on equity and return on assets of Sunlight Financial and Synchrony Financial.
|Net margins||Return on equity||return on assets|
|Sunlight Financial||N / A||0.06%||0.05%|
Valuation and benefits
This table compares the gross revenue, earnings per share (EPS), and valuation of Sunlight Financial and Synchrony Financial.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Sunlight Financial||$114.74 million||5.13||-$153.43 million||($1.44)||-3.09|
|Synchrony Financial||$15.75 billion||1.09||$4.22 billion||$6.85||5.22|
Synchrony Financial has higher revenue and profit than Sunlight Financial. Sunlight Financial is trading at a lower price-to-earnings ratio than Synchrony Financial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
30.1% of Sunlight Financial shares are held by institutional investors. By comparison, 98.3% of Synchrony Financial’s shares are held by institutional investors. 23.0% of the shares of Sunlight Financial are held by insiders of the company. By comparison, 0.6% of Synchrony Financial’s stock is held by company insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.
Synchrony Financial beats Sunlight Financial on 9 out of 14 factors compared between the two stocks.
About Sunlight Financial
Sunlight Financial Holdings Inc. operates a business-to-consumer technology-based point-of-sale financing platform in the United States. Its platform is used to provide secured and unsecured loans to homeowners from third-party lenders to purchase and install residential solar energy systems and other home improvements. The company was founded in 2014 and is based in Charlotte, North Carolina.
About Synchrony Financial
Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products and consumer installment loans. The company also offers private label credit cards, dual cards, co-branded and general purpose credit cards, short and long term installment loans and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts to retail and commercial customers, as well as deposits through brokerage firms. third-party securities. Additionally, it provides debt cancellation products to its credit card customers through online, mobile and direct mail; healthcare payment and financing solutions under the CareCredit, Pets Best and Walgreens brands; payment and financing solutions in the apparel, specialty retail, outdoor, music and luxury industries; and point-of-sale consumer financing for audiology products and dental services. The Company offers its credit products through established programs with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers; and deposit products through various channels, such as digital and print. It serves digital, health and wellness, retail, home, automotive, powersports, jewelry, pets, and other industries. Synchrony Financial was founded in 1932 and is headquartered in Stamford, Connecticut.
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