Financial Review: Synovus Financial (NYSE:SNV) and Akbank T.A.S. (OTCMKTS:AKBTY)

Synovus Financial (NYSE:SNV) and Akbank T.A.S. (OTCMKTS:AKBTY) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

77.0% of Synovus Financial shares are held by institutional investors. 1.1% of Synovus Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Synovus Financial and Akbank T.A.S., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synovus Financial 0 0 6 0 3.00
Akbank T.A.S. 0 0 3 0 3.00

Synovus Financial currently has a consensus price target of $57.57, suggesting a potential upside of 7.29%. Given Synovus Financial’s higher possible upside, equities analysts plainly believe Synovus Financial is more favorable than Akbank T.A.S..

Earnings & Valuation

This table compares Synovus Financial and Akbank T.A.S.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synovus Financial $2.31 billion 3.38 $373.70 million $4.55 11.79
Akbank T.A.S. $5.81 billion 0.51 $898.88 million $0.34 3.38

Akbank T.A.S. has higher revenue and earnings than Synovus Financial. Akbank T.A.S. is trading at a lower price-to-earnings ratio than Synovus Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Synovus Financial and Akbank T.A.S.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synovus Financial 33.57% 15.49% 1.31%
Akbank T.A.S. N/A N/A N/A

Dividends

Synovus Financial pays an annual dividend of $1.32 per share and has a dividend yield of 2.5%. Akbank T.A.S. pays an annual dividend of $0.02 per share and has a dividend yield of 1.7%. Synovus Financial pays out 29.0% of its earnings in the form of a dividend. Akbank T.A.S. pays out 5.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Synovus Financial has raised its dividend for 1 consecutive years. Synovus Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Synovus Financial has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Akbank T.A.S. has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Summary

Synovus Financial beats Akbank T.A.S. on 13 of the 16 factors compared between the two stocks.

About Synovus Financial

Synovus Financial Corp. is a bank holding company, which engages in the provision of financial services. The company operates through the following segments: Community Banking, Wholesale Banking, and Financial Management Services (FMS). The Community Banking business segment serves customers using a relationship-based approach through its branch, ATM, commercial, and private wealth network in addition to mobile, Internet, and telephone banking. The Wholesale Banking business segment serves primarily larger corporate customers by providing commercial lending and deposit services through specialty teams including middle market, CRE, senior housing, national accounts, premium finance, structured lending, healthcare, asset-based lending, and community investment capital. The Financial Management Services (FMS) business segment serves its customers by providing mortgage and trust services and also specializing in professional portfolio management for fixed-income securities, investment banking, the execution of securities transactions as a broker/dealer, asset management, financial planning, and family office services, as well as the provision of individual investment advice on equity a

About Akbank T.A.S.

Akbank TAS engages in the provision of commercial and private banking services. It operates through the following segments: Retail Banking; Commercial Banking, Corporate-Investment, Private Banking, and Wealth Management; and Treasury. The Retail Banking segment offers a variety of retail services such as deposit accounts, consumer loans, commercial installment loans, credit cards, insurance products and asset management services. The Corporate-Investment, Private Banking, and Wealth Management segment provides financial solutions and banking services to large, medium and small size corporate and commercial customers. The Treasury segment conducts TL and FC spot and forward transactions, treasury bonds, government bonds, Eurobond and private sector bond transactions and also derivative trading activities within determined limits. The company was founded on January 30, 1948 and is headquartered in Istanbul, Turkey.

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