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

Profitability

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

Net Margins Return on Equity Return on Assets
EZCORP 3.16% 3.65% 2.29%
Synchrony Financial 13.84% 15.30% 2.43%

Analyst Ratings

This is a summary of current recommendations and price targets for EZCORP and Synchrony Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EZCORP 0 3 1 0 2.25
Synchrony Financial 0 7 16 0 2.70

EZCORP currently has a consensus target price of $9.25, suggesting a potential upside of 2.21%. Synchrony Financial has a consensus target price of $37.23, suggesting a potential upside of 23.59%. Given Synchrony Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Synchrony Financial is more favorable than EZCORP.

Earnings and Valuation

This table compares EZCORP and Synchrony Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EZCORP $750.47 million 0.65 $67.71 million $0.44 20.57
Synchrony Financial $7.04 billion 3.40 $2.11 billion $2.65 11.37

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

Volatility & Risk

EZCORP has a beta of 1.98, suggesting that its stock price is 98% 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.

Insider and Institutional Ownership

89.4% of EZCORP shares are held by institutional investors. Comparatively, 87.2% of Synchrony Financial shares are held by institutional investors. 2.1% of EZCORP shares are held by company insiders. Comparatively, 0.0% of Synchrony Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Synchrony Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. EZCORP does not pay a dividend. Synchrony Financial pays out 22.6% of its earnings in the form of a dividend.

Summary

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

About EZCORP

EZCORP, Inc. provides pawn loans in the United States and Mexico, and consumer loans in Mexico. The Company operates through three segments: U.S. Pawn, which includes its EZPAWN, Value Pawn & Jewelry and other branded pawn operations in the United States; Mexico Pawn, which includes its Empeno Facil pawn operations and cash converters buy/sell store operations in Mexico, and Other International, which includes its CASHMAX financial services operations in Canada and its equity interest in Cash Converters International. It offers pawn loans, which are non-recourse loans, collateralized by tangible property, and it sells merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers at its pawn stores.

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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