Funding Circle (OTCMKTS:FDCHF) and Synchrony Financial (NYSE:SYF) Critical Survey

Synchrony Financial (NYSE:SYF) and Funding Circle (OTCMKTS:FDCHF) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Valuation and Earnings

This table compares Synchrony Financial and Funding Circle’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchrony Financial	$20.71 billion	0.85	$2.24 billion	$5.18	8.32
Funding Circle	N/A	N/A	N/A	N/A	N/A

Synchrony Financial has higher revenue and earnings than Funding Circle.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Synchrony Financial	10.68%	17.37%	1.99%
Funding Circle	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Synchrony Financial and Funding Circle, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchrony Financial	1	10	7	0	2.33
Funding Circle	0	0	0	0	N/A

Synchrony Financial currently has a consensus target price of $39.24, indicating a potential downside of 9.01%. Given Synchrony Financial’s higher probable upside, equities research analysts clearly believe Synchrony Financial is more favorable than Funding Circle.

Insider and Institutional Ownership

96.5% of Synchrony Financial shares are held by institutional investors. 0.7% of Synchrony Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Synchrony Financial beats Funding Circle on 8 of the 8 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 Funding Circle

Funding Circle Holdings plc, together with its subsidiaries, provides online lending platforms in the United Kingdom, the United States, and internationally. The company offers small business loans, recovery loan schemes, and business finance solutions to small and medium enterprises. It also provides flexipay and flexipay card solutions. The company acts as a special purpose bankruptcy remote entity that issues loan payment dependent debt securities to accredited investors. The company was incorporated in 2010 and is based in London, the United Kingdom.