TPG RE Finance Trust (NYSE: TRTX) and Synchrony Financial (NYSE:SYF) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Dividends

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TPG RE Finance Trust pays an annual dividend of $0.71 per share and has a dividend yield of 3.8%. Synchrony Financial pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Synchrony Financial pays out 24.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares TPG RE Finance Trust and Synchrony Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TPG RE Finance Trust $92.39 million 12.16 $69.96 million N/A N/A
Synchrony Financial $16.70 billion 1.85 $1.94 billion $2.42 16.60

Synchrony Financial has higher revenue and earnings than TPG RE Finance Trust.

Analyst Recommendations

This is a summary of recent recommendations and price targets for TPG RE Finance Trust and Synchrony Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TPG RE Finance Trust 0 2 3 0 2.60
Synchrony Financial 0 8 11 0 2.58

TPG RE Finance Trust currently has a consensus target price of $21.20, suggesting a potential upside of 12.53%. Synchrony Financial has a consensus target price of $37.71, suggesting a potential downside of 6.11%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe TPG RE Finance Trust is more favorable than Synchrony Financial.

Insider & Institutional Ownership

26.4% of TPG RE Finance Trust shares are owned by institutional investors. Comparatively, 87.0% of Synchrony Financial shares are owned by institutional investors. 0.0% of Synchrony Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares TPG RE Finance Trust and Synchrony Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TPG RE Finance Trust N/A N/A N/A
Synchrony Financial 11.75% 14.62% 2.27%

Summary

Synchrony Financial beats TPG RE Finance Trust on 8 of the 13 factors compared between the two stocks.

TPG RE Finance Trust Company Profile

TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.

Synchrony Financial Company Profile

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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