Signature Bank (NASDAQ: SBNY) and Synovus Financial Corp. (NYSE:SNV) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Earnings & Valuation

This table compares Signature Bank and Synovus Financial Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Signature Bank $926.93 million 7.62 $386.25 million $7.14 18.28
Synovus Financial Corp. $1.27 billion 4.40 $296.52 million $2.48 18.85

Signature Bank has higher revenue, but lower earnings than Synovus Financial Corp.. Signature Bank is trading at a lower price-to-earnings ratio than Synovus Financial Corp., indicating that it is currently the more affordable of the two stocks.

Dividends

Synovus Financial Corp. pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Signature Bank does not pay a dividend. Synovus Financial Corp. pays out 24.2% of its earnings in the form of a dividend. Synovus Financial Corp. has raised its dividend for 3 consecutive years.

Profitability

This table compares Signature Bank and Synovus Financial Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Signature Bank 26.40% 12.58% 1.18%
Synovus Financial Corp. 21.39% 10.44% 0.97%

Risk & Volatility

Signature Bank has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Synovus Financial Corp. has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Signature Bank and Synovus Financial Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Signature Bank 0 3 12 0 2.80
Synovus Financial Corp. 0 9 5 0 2.36

Signature Bank presently has a consensus target price of $154.80, suggesting a potential upside of 18.61%. Synovus Financial Corp. has a consensus target price of $44.70, suggesting a potential downside of 4.36%. Given Signature Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Signature Bank is more favorable than Synovus Financial Corp..

Insider and Institutional Ownership

95.7% of Signature Bank shares are held by institutional investors. Comparatively, 79.1% of Synovus Financial Corp. shares are held by institutional investors. 1.5% of Synovus Financial Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Signature Bank beats Synovus Financial Corp. on 11 of the 17 factors compared between the two stocks.

About Signature Bank

Signature Bank is a full-service commercial bank. The Bank operates over 30 private client offices throughout the New York metropolitan area. Its segments include Commercial Banking and Specialty Finance. It offers a range of business and personal banking products and services. Its specialty finance subsidiary, Signature Financial LLC (Signature Financial), provides equipment finance and leasing services. Signature Securities Group Corporation, a subsidiary of Bank, is a licensed broker-dealer, investment advisor offering investment, brokerage, asset management and insurance products and services. The Commercial Banking segment consists of commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. The Specialty Finance segment consists of financing and leasing products, including equipment, transportation, taxi medallion, commercial marine, commercial vehicle, municipal and national franchise financing and/or leasing.

About Synovus Financial Corp.

Synovus Financial Corp. is a financial services company and a bank holding company. The Company provides integrated financial services, including commercial and retail banking, financial management, insurance and mortgage services, to its customers through locally branded banking divisions of its subsidiary bank, Synovus Bank (the Bank), and other offices in Georgia, Alabama, South Carolina, Florida and Tennessee. The Bank offers commercial banking services and retail banking services. The Bank’s commercial banking services include cash management, asset management, capital markets services, institutional trust services, and commercial, financial and real estate loans. Its retail banking services include mortgage, installment and other retail loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet-based banking services, and bank credit card services, including MasterCard and Visa services.

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