Chemung Financial (NASDAQ:CHMG) and Synovus Financial (NYSE:SNV) Critical Survey

Synovus Financial (NYSE:SNV) and Chemung Financial (NASDAQ:CHMG) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Earnings and Valuation

This table compares Synovus Financial and Chemung Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synovus Financial	$2.36 billion	2.98	$482.46 million	$5.36	9.42
Chemung Financial	$140.78 million	2.07	$23.67 million	$3.14	19.35

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

Profitability

This table compares Synovus Financial and Chemung Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synovus Financial	21.97%	16.13%	1.33%
Chemung Financial	10.73%	11.80%	1.00%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Synovus Financial and Chemung Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synovus Financial	0	8	5	0	2.38
Chemung Financial	1	3	0	0	1.75

Synovus Financial presently has a consensus target price of $58.08, suggesting a potential upside of 15.01%. Chemung Financial has a consensus target price of $57.00, suggesting a potential downside of 6.20%. Given Synovus Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Synovus Financial is more favorable than Chemung Financial.

Insider and Institutional Ownership

83.8% of Synovus Financial shares are held by institutional investors. Comparatively, 47.5% of Chemung Financial shares are held by institutional investors. 1.0% of Synovus Financial shares are held by insiders. Comparatively, 12.4% of Chemung Financial 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.

Dividends

Synovus Financial pays an annual dividend of $1.56 per share and has a dividend yield of 3.1%. Chemung Financial pays an annual dividend of $1.36 per share and has a dividend yield of 2.2%. Synovus Financial pays out 29.1% of its earnings in the form of a dividend. Chemung Financial pays out 43.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Synovus Financial has raised its dividend for 1 consecutive years and Chemung Financial has raised its dividend for 1 consecutive years. Synovus Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Synovus Financial has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Chemung Financial has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Summary

Synovus Financial beats Chemung Financial on 14 of the 16 factors compared between the two stocks.

About Synovus Financial

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and consumer banking products and services. It operates through four segments: Community Banking, Wholesale Banking, Consumer Banking, and Financial Management Services. The company's commercial banking services include treasury and asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate lending services. Its consumer banking services comprise accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; internet-based banking services; and bank credit and debit card services, including Visa and MasterCard services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, trust management, and financial planning services, as well as provides individual investment advice on equity and other securities. The company was founded in 1888 and is headquartered in Columbus, Georgia.

About Chemung Financial

Chemung Financial Corporation operates as a bank holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial and residential mortgage loans; and consumer loans, including home equity lines of credit and home equity term loans. In addition, the company provides interest rate swaps, letters of credit, employee benefit plans, insurance products, mutual fund, brokerage, and tax preparation services. Further, it offers guardian, custodian, trustee, investment, pension, estate planning, and employee benefit administrative services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.