Synchrony Financial (NYSE:SYF) vs. Jiayin Group (NYSE:JFIN) Critical Review

Synchrony Financial (NYSE:SYF) and Jiayin Group (NASDAQ:JFIN) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Insider & Institutional Ownership

86.4% of Synchrony Financial shares are owned by institutional investors. Comparatively, 0.1% of Jiayin Group shares are owned by institutional investors. 0.3% of Synchrony Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Synchrony Financial and Jiayin Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synchrony Financial $18.25 billion 1.20 $2.79 billion $3.74 8.83
Jiayin Group $419.16 million 1.46 $88.98 million $0.44 25.98

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

Dividends

Synchrony Financial pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Jiayin Group does not pay a dividend. Synchrony Financial pays out 23.5% of its earnings in the form of a dividend. Synchrony Financial has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for Synchrony Financial and Jiayin Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synchrony Financial 0 4 10 0 2.71
Jiayin Group 0 0 1 0 3.00

Synchrony Financial presently has a consensus target price of $38.85, indicating a potential upside of 17.57%. Jiayin Group has a consensus target price of $17.00, indicating a potential upside of 48.73%. Given Jiayin Group’s stronger consensus rating and higher possible upside, analysts plainly believe Jiayin Group is more favorable than Synchrony Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Synchrony Financial 17.82% 19.50% 2.68%
Jiayin Group N/A N/A N/A

Summary

Synchrony Financial beats Jiayin Group on 11 of the 16 factors compared between the two stocks.

About Synchrony Financial

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, veterinary and personal care procedures, and services and products, such as dental, vision, audiology, and cosmetic; 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 various channels, such as digital and print. Synchrony Financial was incorporated in 2003 and is headquartered in Stamford, Connecticut.

About Jiayin Group

Jiayin Group Inc. operates as an online individual finance marketplace that connects individual investors and individual borrowers in China. It operates a secure and open platform that facilitates transparent, secure, and fast connections between investors and borrowers. The company was founded in 2011 and is headquartered in Shanghai, China.

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