Financial Contrast: PHH Corp (PHH) & Synchrony Financial (SYF)
PHH Corp (NYSE: PHH) and Synchrony Financial (NYSE:SYF) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Volatility & Risk
PHH Corp has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, Synchrony Financial has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Earnings & Valuation
This table compares PHH Corp and Synchrony Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PHH Corp||$734.00 million||0.94||-$261.66 million||($5.10)||-2.65|
|Synchrony Financial||$7.04 billion||3.33||$2.11 billion||$2.65||11.12|
Synchrony Financial has higher revenue and earnings than PHH Corp. PHH Corp is trading at a lower price-to-earnings ratio than Synchrony Financial, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for PHH Corp and Synchrony Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PHH Corp currently has a consensus price target of $15.83, indicating a potential upside of 17.28%. Synchrony Financial has a consensus price target of $37.25, indicating a potential upside of 26.40%. Given Synchrony Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Synchrony Financial is more favorable than PHH Corp.
Synchrony Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. PHH Corp does not pay a dividend. Synchrony Financial pays out 22.6% of its earnings in the form of a dividend.
Insider & Institutional Ownership
97.4% of PHH Corp shares are held by institutional investors. Comparatively, 87.1% of Synchrony Financial shares are held by institutional investors. 2.5% of PHH Corp shares are held by insiders. Comparatively, 0.0% of Synchrony Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares PHH Corp and Synchrony Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Synchrony Financial beats PHH Corp on 11 of the 15 factors compared between the two stocks.
About PHH Corp
PHH Corporation is a standalone mortgage company. The Company provides outsourced mortgage banking services to a range of clients, including financial institutions and real estate brokers throughout the United States, and is focused on originating, selling, servicing and subservicing residential mortgage loans through its subsidiary, PHH Mortgage Corporation and its subsidiaries. It operates through two segments: Mortgage Production and Mortgage Servicing. The Mortgage Production segment provides mortgage loan origination services and sells mortgage loans. The Mortgage Servicing segment performs servicing activities for loans originated by the Company and mortgage servicing rights purchased from others, and acts as a subservicer for certain clients that own the underlying mortgage servicing rights. The Mortgage Production segment provides private label mortgage services to financial institutions and real estate brokers, and sources mortgage loans through its retail platform.
About Synchrony Financial
Synchrony Financial is a consumer financial services company. The Company provides a range of credit products through programs it has established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. The Company’s revenue activities are managed through three sales platforms: Retail Card, Payment Solutions and CareCredit. It offers its credit products through its subsidiary, Synchrony Bank (the Bank). Through the Bank, it offers a range of deposit products insured by the Federal Deposit Insurance Corporation (FDIC), including certificates of deposit, individual retirement accounts (IRAs), money market accounts and savings accounts. The Company offers three types of credit products: credit cards, commercial credit products and consumer installment loans. The Company also offers a debt cancellation product. It offers two types of credit cards: private label credit cards and Dual Cards.
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