Synchrony Financial (NYSE:SYF – Get Free Report) and Oportun Financial (NASDAQ:OPRT – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares Synchrony Financial and Oportun Financial’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% |
| Oportun Financial | 3.88% | 14.99% | 1.87% |
Insider and Institutional Ownership
96.5% of Synchrony Financial shares are held by institutional investors. Comparatively, 82.7% of Oportun Financial shares are held by institutional investors. 0.4% of Synchrony Financial shares are held by insiders. Comparatively, 1.6% of Oportun Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Synchrony Financial and Oportun Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Synchrony Financial | 0 | 9 | 10 | 0 | 2.53 |
| Oportun Financial | 0 | 3 | 2 | 0 | 2.40 |
Synchrony Financial currently has a consensus target price of $87.78, indicating a potential upside of 17.08%. Oportun Financial has a consensus target price of $9.25, indicating a potential downside of 28.90%. Given Synchrony Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Synchrony Financial is more favorable than Oportun Financial.
Risk & Volatility
Synchrony Financial has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Earnings & Valuation
This table compares Synchrony Financial and Oportun Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Synchrony Financial | $22.60 billion | 1.03 | $3.55 billion | $9.58 | 7.83 |
| Oportun Financial | $956.70 million | 0.63 | $25.25 million | $0.40 | 32.52 |
Synchrony Financial has higher revenue and earnings than Oportun Financial. Synchrony Financial is trading at a lower price-to-earnings ratio than Oportun Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Synchrony Financial beats Oportun Financial on 12 of the 14 factors compared between the two stocks.
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.
About Oportun Financial
Oportun Financial Corporation provides financial services. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. The company was founded in 2005 and is headquartered in San Carlos, California.
Receive News & Ratings for Synchrony Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Synchrony Financial and related companies with MarketBeat.com's FREE daily email newsletter.
