Critical Survey: Synchrony Financial (NYSE:SYF) versus Pagaya Technologies (NASDAQ:PGY)

Synchrony Financial (NYSE:SYFGet Rating) and Pagaya Technologies (NASDAQ:PGYGet Rating) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Volatility and Risk

Synchrony Financial has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 12.7, meaning that its stock price is 1,170% more volatile than the S&P 500.

Insider & Institutional Ownership

98.3% of Synchrony Financial shares are owned by institutional investors. Comparatively, 70.8% of Pagaya Technologies shares are owned by institutional investors. 0.6% of Synchrony Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Synchrony Financial and Pagaya Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synchrony Financial 1 4 10 0 2.60
Pagaya Technologies 0 0 0 0 N/A

Synchrony Financial currently has a consensus target price of $44.88, indicating a potential upside of 32.37%. Given Synchrony Financial’s higher possible upside, equities research analysts plainly believe Synchrony Financial is more favorable than Pagaya Technologies.

Profitability

This table compares Synchrony Financial and Pagaya Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synchrony Financial 22.76% 27.06% 3.68%
Pagaya Technologies N/A -252.79% -19.65%

Valuation & Earnings

This table compares Synchrony Financial and Pagaya Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synchrony Financial $15.75 billion 1.04 $4.22 billion $6.85 4.95
Pagaya Technologies $474.59 million 1.72 -$91.15 million N/A N/A

Synchrony Financial has higher revenue and earnings than Pagaya Technologies.

Summary

Synchrony Financial beats Pagaya Technologies on 9 of the 11 factors compared between the two stocks.

About Synchrony Financial

(Get Rating)

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-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 to retail and commercial customers, 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; healthcare payments and financing solutions under the CareCredit, Pets Best, and Walgreens brands; payments 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 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, powersports, jewelry, pets, and other industries. Synchrony Financial was founded in 1932 and is headquartered in Stamford, Connecticut.

About Pagaya Technologies

(Get Rating)

Pagaya Technologies Ltd. operates as a financial technology company in Israel, the United States, and the Cayman Islands. It develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. Its partners include high-growth financial technology companies, incumbent financial institutions, auto finance providers, and brokers. The company was founded in 2016 and is headquartered in Tel Aviv, Israel.

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