Reviewing Synchrony Financial (SYF)’s and Total System Services Inc. (NYSE:TSS)’s results

As Credit Services companies, Synchrony Financial (NYSE:SYF) and Total System Services Inc. (NYSE:TSS) are our subject to compare. And more specifically their risk, analyst recommendations, institutional ownership, profitability, dividends, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synchrony Financial 8.41B 2.78 3.26B 4.47 7.79
Total System Services Inc. 4.08B 5.53 596.42M 3.27 30.35

Table 1 shows the top-line revenue, earnings per share (EPS) and valuation for Synchrony Financial and Total System Services Inc. Total System Services Inc. is observed to has lower revenue and earnings than Synchrony Financial. Business that presently has a lower price-to-earnings ratio means that it is the more affordable of the two businesses. Synchrony Financial’s presently lower price-to-earnings ratio means it is more affordable than Total System Services Inc.

Profitability

Table 2 has Synchrony Financial and Total System Services Inc.’s net margins, return on assets and return on equity.

Net Margins Return on Equity Return on Assets
Synchrony Financial 38.76% 22.5% 3.1%
Total System Services Inc. 14.62% 0% 0%

Risk & Volatility

Synchrony Financial’s current beta is 1.27 and it happens to be 27.00% more volatile than Standard and Poor’s 500. Competitively, Total System Services Inc. is 15.00% more volatile than Standard and Poor’s 500, because of the 1.15 beta.

Dividends

Synchrony Financial pays out its dividends annually at $0.78 per share and 2.3% dividend yield. The dividend yield for Total System Services Inc. is 0.41% while its annual dividend payout is $0.52 per share.

Analyst Recommendations

The Ratings and Recommendations for Synchrony Financial and Total System Services Inc. are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Synchrony Financial 0 2 3 2.60
Total System Services Inc. 0 0 4 3.00

Synchrony Financial’s upside potential currently stands at 11.93% and an $38 average target price. Meanwhile, Total System Services Inc.’s average target price is $102.5, while its potential downside is -19.46%. The data from earlier shows that analysts view suggest that Synchrony Financial seems more appealing than Total System Services Inc.

Institutional and Insider Ownership

Synchrony Financial and Total System Services Inc. has shares held by institutional investors as follows: 98.8% and 82.7%. About 0.2% of Synchrony Financial’s share are held by insiders. Competitively, 0.5% are Total System Services Inc.’s share held by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Synchrony Financial 3.08% 5.8% 13.29% 26.21% 2.71% 48.59%
Total System Services Inc. -0.99% -0.53% 7.79% 7.74% 14.3% 21.9%

For the past year Synchrony Financial was more bullish than Total System Services Inc.

Summary

Synchrony Financial beats on 13 of the 17 factors Total System Services Inc.

Synchrony Financial operates as a consumer financial services company in the United States. The company offers private label credit cards, dual 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, money market, and savings accounts, 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.

Total System Services, Inc. provides payment processing, merchant, and related payment services to financial and nonfinancial institutions in the United States, Europe, Canada, Mexico, and internationally. It operates through four segments: North America Services, International Services, Merchant Services, and NetSpend. The company offers account processing and output services, including processing the card application, initiating service for the cardholder, processing card transaction for the issuing retailer or financial institution, and accumulating the account's transactions. It also provides fraud management services to monitor the unauthorized use of accounts; fraud detection systems for identifying fraudulent transactions; and other services, such as customized communication services to cardholders, and information verification services associated with granting credit, debt collection, and customer service. In addition, the company offers processing services, acquiring solutions, related systems, and integrated support services, which include processing various payment forms, such as credit, debit, prepaid, electronic benefit transfer, and electronic check; authorization and capture of transactions; clearing and settlement of transactions; information reporting services related to transactions; merchant billing services; and point-of-sale equipment sales and service. Further, it provides general purpose reloadable prepaid debit cards and payroll cards, as well as alternative financial services to underbanked and other consumers. The company was founded in 1982 and is headquartered in Columbus, Georgia.

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