Carbon Streaming (OTCMKTS:OFSTF) vs. Synchrony Financial (NYSE:SYF) Critical Comparison

Synchrony Financial (NYSE:SYF) and Carbon Streaming (OTCMKTS:OFSTF) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Valuation and Earnings

This table compares Synchrony Financial and Carbon Streaming”s 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	1.35	$3.50 billion	$8.54	6.54
Carbon Streaming	$1.17 million	12.87	-$35.50 million	($1.59)	-0.18

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

Risk & Volatility

Synchrony Financial has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Carbon Streaming has a beta of -63.39, meaning that its share price is 6,439% less volatile than the S&P 500.

Profitability

This table compares Synchrony Financial and Carbon Streaming’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%
Carbon Streaming	-5,329.32%	-7.99%	-7.61%

Institutional and Insider Ownership

96.5% of Synchrony Financial shares are owned by institutional investors. 0.3% of Synchrony Financial shares are owned by company insiders. Comparatively, 2.4% of Carbon Streaming shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Synchrony Financial and Carbon Streaming, as reported by MarketBeat.

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

Synchrony Financial currently has a consensus price target of $69.30, suggesting a potential upside of 24.16%. Given Synchrony Financial’s stronger consensus rating and higher possible upside, research analysts clearly believe Synchrony Financial is more favorable than Carbon Streaming.

Summary

Synchrony Financial beats Carbon Streaming on 13 of the 15 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 Carbon Streaming

Carbon Streaming Corporation a carbon credit streaming and royalty company focused on creating shareholder value primarily through the acquisition and sale of carbon credits. It provides capital to carbon projects globally, primarily by entering into or acquiring streaming, royalty or royalty-like arrangements for the purchase of carbon credits. The company was formerly known as Mexivada Mining Corp. and changed its name to Carbon Streaming Corporation in June 2020. Carbon Streaming Corporation was incorporated in 2004 and is headquartered in Burlington, Canada.