Financial Comparison: TeraWulf (NASDAQ:WULF) vs. Synchrony Financial (NYSE:SYF)

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

Risk & Volatility

Synchrony Financial has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500.

Earnings & Valuation

This table compares Synchrony Financial and TeraWulf”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchrony Financial	$20.71 billion	1.28	$2.24 billion	$7.66	8.87
TeraWulf	$69.23 million	45.26	-$73.42 million	N/A	N/A

Synchrony Financial has higher revenue and earnings than TeraWulf.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Synchrony Financial	13.98%	16.64%	1.96%
TeraWulf	-41.88%	-15.91%	-11.67%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Synchrony Financial and TeraWulf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchrony Financial	1	7	13	1	2.64
TeraWulf	0	0	7	1	3.13

Synchrony Financial presently has a consensus price target of $58.68, suggesting a potential downside of 13.61%. TeraWulf has a consensus price target of $8.07, suggesting a potential downside of 0.60%. Given TeraWulf’s stronger consensus rating and higher possible upside, analysts plainly believe TeraWulf is more favorable than Synchrony Financial.

Institutional and Insider Ownership

96.5% of Synchrony Financial shares are owned by institutional investors. Comparatively, 62.5% of TeraWulf shares are owned by institutional investors. 0.3% of Synchrony Financial shares are owned by insiders. Comparatively, 24.9% of TeraWulf shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Synchrony Financial beats TeraWulf on 7 of the 12 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 TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.