Synchrony Financial (SYF) versus Elevate Credit (ELVT) Critical Comparison

Synchrony Financial (NYSE: SYF) and Elevate Credit (NYSE:ELVT) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Valuation & Earnings

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This table compares Synchrony Financial and Elevate Credit’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synchrony Financial $16.70 billion 1.60 $1.94 billion $2.62 13.38
Elevate Credit $673.13 million 0.46 -$6.91 million $0.16 46.25

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

Profitability

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

Net Margins Return on Equity Return on Assets
Synchrony Financial 12.36% 15.60% 2.38%
Elevate Credit -1.03% 6.84% 0.87%

Dividends

Synchrony Financial pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. Elevate Credit does not pay a dividend. Synchrony Financial pays out 22.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for Synchrony Financial and Elevate Credit, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synchrony Financial 1 8 12 0 2.52
Elevate Credit 0 2 7 0 2.78

Synchrony Financial presently has a consensus target price of $38.65, suggesting a potential upside of 10.24%. Elevate Credit has a consensus target price of $10.50, suggesting a potential upside of 41.89%. Given Elevate Credit’s stronger consensus rating and higher probable upside, analysts clearly believe Elevate Credit is more favorable than Synchrony Financial.

Institutional & Insider Ownership

88.7% of Synchrony Financial shares are owned by institutional investors. Comparatively, 42.2% of Elevate Credit shares are owned by institutional investors. 0.1% of Synchrony Financial shares are owned by company insiders. Comparatively, 32.0% of Elevate Credit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Synchrony Financial beats Elevate Credit on 10 of the 15 factors compared between the two stocks.

Synchrony Financial Company Profile

Synchrony Financial operates as a consumer financial services company in the United States. The company offers private label credit cards, dual cards, general purpose co-branded credit cards, and small and medium-sized business credit products; and promotional financing for consumer purchases, such as private label credit cards and installment loans. It also provides promotional financing to consumers for health and personal care procedures, products, or services, such as dental, veterinary, cosmetic, vision and audiology; debt cancellation 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. 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 multiple channels, including digital and print. Synchrony Financial was incorporated in 2003 and is headquartered in Stamford, Connecticut.

Elevate Credit Company Profile

Elevate Credit, Inc. provides online credit solutions to non-prime consumers in the United States and the United Kingdom. The company offers unsecured online installment loans and lines of credit. Its products include Rise installment loan and line of credit products; Elastic, a line of credit product; and Sunny installment loan products. Elevate Credit, Inc. was incorporated in 2014 and is headquartered in Fort Worth, Texas.

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