Synchrony Financial (NYSE: SYF) and EZCORP (NASDAQ:EZPW) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Dividends

Synchrony Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. EZCORP does not pay a dividend. Synchrony Financial pays out 22.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Synchrony Financial and EZCORP, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synchrony Financial 0 8 13 0 2.62
EZCORP 0 3 1 0 2.25

Synchrony Financial presently has a consensus price target of $37.25, suggesting a potential upside of 26.40%. EZCORP has a consensus price target of $9.25, suggesting a potential downside of 6.09%. Given Synchrony Financial’s stronger consensus rating and higher probable upside, equities analysts plainly believe Synchrony Financial is more favorable than EZCORP.

Institutional and Insider Ownership

87.1% of Synchrony Financial shares are held by institutional investors. Comparatively, 89.4% of EZCORP shares are held by institutional investors. 0.0% of Synchrony Financial shares are held by insiders. Comparatively, 2.1% of EZCORP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Synchrony Financial has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, EZCORP has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Profitability

This table compares Synchrony Financial and EZCORP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synchrony Financial 13.84% 15.30% 2.43%
EZCORP 3.16% 3.65% 2.29%

Valuation and Earnings

This table compares Synchrony Financial and EZCORP’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Synchrony Financial $7.04 billion 3.33 $2.11 billion $2.65 11.12
EZCORP $750.47 million 0.71 $67.71 million $0.44 22.39

Synchrony Financial has higher revenue and earnings than EZCORP. Synchrony Financial is trading at a lower price-to-earnings ratio than EZCORP, indicating that it is currently the more affordable of the two stocks.

Summary

Synchrony Financial beats EZCORP on 11 of the 16 factors compared between the two stocks.

Synchrony Financial Company Profile

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.

EZCORP Company Profile

EZCORP, Inc. provides pawn loans in the United States and Mexico, and consumer loans in Mexico. The Company operates through three segments: U.S. Pawn, which includes its EZPAWN, Value Pawn & Jewelry and other branded pawn operations in the United States; Mexico Pawn, which includes its Empeno Facil pawn operations and cash converters buy/sell store operations in Mexico, and Other International, which includes its CASHMAX financial services operations in Canada and its equity interest in Cash Converters International. It offers pawn loans, which are non-recourse loans, collateralized by tangible property, and it sells merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers at its pawn stores.

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