Financial Comparison: Synchrony Financial (NYSE:SYF) versus SAIHEAT (NASDAQ:SAIH)

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

Valuation and Earnings

This table compares Synchrony Financial and SAIHEAT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchrony Financial	$16.13 billion	1.28	$3.50 billion	$8.54	6.21
SAIHEAT	$6.95 million	11.55	-$6.12 million	N/A	N/A

Synchrony Financial has higher revenue and earnings than SAIHEAT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Synchrony Financial	15.36%	18.30%	2.23%
SAIHEAT	N/A	N/A	N/A

Risk and Volatility

Synchrony Financial has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, SAIHEAT has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Synchrony Financial and SAIHEAT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchrony Financial	0	6	14	1	2.76
SAIHEAT	0	0	0	0	0.00

Synchrony Financial currently has a consensus price target of $68.70, suggesting a potential upside of 29.53%. Given Synchrony Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Synchrony Financial is more favorable than SAIHEAT.

Institutional & Insider Ownership

96.5% of Synchrony Financial shares are held by institutional investors. Comparatively, 0.2% of SAIHEAT shares are held by institutional investors. 0.3% 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 company is poised for long-term growth.

Summary

Synchrony Financial beats SAIHEAT on 11 of the 13 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 SAIHEAT

SAIHEAT Limited engages in the development of liquid-cooling data centers. It develops technologies for the advanced computing center ecosystem, a center that provides high-performance servers, liquid cooling, and systems for capturing and recycling computing heat. The company was formerly known as SAI.TECH Global Corporation and changed its name to SAIHEAT Limited in August 2024. SAIHEAT Limited was founded in 2019 and is headquartered in Singapore.