Contrasting TeraWulf (NASDAQ:WULF) and Synchrony Financial (NYSE:SYF)

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

Volatility & Risk

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

Analyst Recommendations

This is a summary of recent ratings and price targets for TeraWulf and Synchrony Financial, as provided by MarketBeat.

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

TeraWulf presently has a consensus price target of $8.07, indicating a potential upside of 4.69%. Synchrony Financial has a consensus price target of $58.68, indicating a potential downside of 12.32%. Given TeraWulf’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TeraWulf is more favorable than Synchrony Financial.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$69.23 million	42.98	-$73.42 million	N/A	N/A
Synchrony Financial	$20.71 billion	1.26	$2.24 billion	$7.66	8.74

Synchrony Financial has higher revenue and earnings than TeraWulf.

Profitability

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

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

Insider & Institutional Ownership

62.5% of TeraWulf shares are held by institutional investors. Comparatively, 96.5% of Synchrony Financial shares are held by institutional investors. 24.9% of TeraWulf shares are held by insiders. Comparatively, 0.3% of Synchrony Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Synchrony Financial beats TeraWulf on 7 of the 12 factors compared between the two stocks.

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.

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.