Synchrony Financial (NYSE:SYF) & StoneX Group (NASDAQ:SNEX) Financial Comparison

StoneX Group (NASDAQ:SNEX) and Synchrony Financial (NYSE:SYF) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Volatility and Risk

StoneX Group has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Synchrony Financial has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
StoneX Group	0.25%	16.43%	0.91%
Synchrony Financial	15.72%	23.07%	3.01%

Institutional and Insider Ownership

75.9% of StoneX Group shares are owned by institutional investors. Comparatively, 96.5% of Synchrony Financial shares are owned by institutional investors. 11.8% of StoneX Group shares are owned by company insiders. Comparatively, 0.3% of Synchrony Financial 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.

Earnings and Valuation

This table compares StoneX Group and Synchrony Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneX Group	$132.38 billion	0.06	$305.90 million	$4.47	23.72
Synchrony Financial	$22.60 billion	1.20	$3.55 billion	$9.29	8.43

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for StoneX Group and Synchrony Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneX Group	0	1	3	0	2.75
Synchrony Financial	0	7	13	1	2.71

StoneX Group presently has a consensus target price of $122.00, indicating a potential upside of 15.06%. Synchrony Financial has a consensus target price of $85.00, indicating a potential upside of 8.54%. Given StoneX Group’s stronger consensus rating and higher possible upside, analysts plainly believe StoneX Group is more favorable than Synchrony Financial.

Summary

Synchrony Financial beats StoneX Group on 10 of the 15 factors compared between the two stocks.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.

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 co-brand 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, and sweep and affinity deposits, as well as accepts deposits through third-party securities brokerage firms. In addition, it provides debt cancellation products to its credit card customers through online, mobile, and direct mail; and healthcare payments and financing solutions under the CareCredit and Walgreens brands; payments and financing solutions in the apparel, specialty retail, outdoor, music, and luxury industries, such as American Eagle, Dick's Sporting Goods, Guitar Center, Kawasaki, Pandora, Polaris, Suzuki, and Sweetwater. The company offers its credit products through programs established 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, auto, telecommunications, jewelry, pets, and other industries. The company was founded in 1932 and is headquartered in Stamford, Connecticut.