Green Dot (NYSE:GDOT) versus Synchrony Financial (NYSE:SYF) Financial Survey

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

Analyst Ratings

This is a breakdown of recent ratings for Synchrony Financial and Green Dot, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchrony Financial	0	9	10	0	2.53
Green Dot	1	2	1	0	2.00

Synchrony Financial currently has a consensus target price of $87.78, indicating a potential upside of 21.48%. Green Dot has a consensus target price of $16.12, indicating a potential upside of 39.61%. Given Green Dot’s higher possible upside, analysts clearly believe Green Dot is more favorable than Synchrony Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Synchrony Financial	14.59%	22.26%	2.79%
Green Dot	-0.11%	7.13%	1.04%

Risk and Volatility

Synchrony Financial has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Insider & Institutional Ownership

96.5% of Synchrony Financial shares are owned by institutional investors. Comparatively, 92.6% of Green Dot shares are owned by institutional investors. 0.4% of Synchrony Financial shares are owned by company insiders. Comparatively, 1.4% of Green Dot shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Synchrony Financial and Green Dot”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchrony Financial	$22.60 billion	1.00	$3.55 billion	$9.58	7.54
Green Dot	$2.08 billion	0.32	-$98.87 million	($0.08)	-144.38

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

Summary

Synchrony Financial beats Green Dot on 12 of the 14 factors compared between the two stocks.

About Synchrony Financial

Synchrony Financial is a consumer financial services company that provides credit products and related services through partnerships with retailers, healthcare providers and other businesses. Its offerings include private-label and co-branded credit cards, installment loans and promotional financing options. The company also provides consumer banking products, including savings accounts and certificates of deposit. Its financing solutions serve customers in areas such as retail, home improvement, automotive, health and wellness, and digital commerce, primarily in the United States.

About Green Dot

Green Dot Corporation is a financial technology company and bank holding company that provides digital banking, payments and money-movement services. Its offerings include consumer banking products such as GO2bank and prepaid debit cards, as well as services that help customers receive deposits, make payments and access cash. Through its banking-as-a-service platform, Green Dot also provides businesses with banking technology, payment capabilities and program management services that can be integrated into their own products.