DNB Financial (DNBF) vs. Synovus (SNV) Head-To-Head Analysis

DNB Financial (NASDAQ: DNBF) and Synovus (NYSE:SNV) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Institutional and Insider Ownership

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30.1% of DNB Financial shares are held by institutional investors. Comparatively, 81.0% of Synovus shares are held by institutional investors. 13.5% of DNB Financial shares are held by company insiders. Comparatively, 1.5% of Synovus shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

DNB Financial pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Synovus pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. DNB Financial pays out 12.3% of its earnings in the form of a dividend. Synovus pays out 39.5% 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 has raised its dividend for 4 consecutive years. Synovus is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares DNB Financial and Synovus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DNB Financial 16.42% 8.81% 0.82%
Synovus 18.27% 11.20% 1.03%

Valuation & Earnings

This table compares DNB Financial and Synovus’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DNB Financial $48.40 million 3.04 $7.94 million $2.28 15.07
Synovus $1.51 billion 3.91 $275.47 million $2.53 19.66

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

Analyst Recommendations

This is a breakdown of recent ratings for DNB Financial and Synovus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DNB Financial 0 1 0 0 2.00
Synovus 0 8 4 0 2.33

DNB Financial currently has a consensus target price of $37.00, indicating a potential upside of 7.71%. Synovus has a consensus target price of $51.92, indicating a potential upside of 4.40%. Given DNB Financial’s higher probable upside, equities analysts plainly believe DNB Financial is more favorable than Synovus.

Risk and Volatility

DNB Financial has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Synovus has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

Synovus beats DNB Financial on 14 of the 17 factors compared between the two stocks.

DNB Financial Company Profile

DNB Financial Corporation operates as the bank holding company for DNB First, National Association that provides a range of commercial banking products and services to individuals and small to medium sized businesses. The company offers deposit products, including money market, savings, demand, and NOW accounts; and time deposits, as well as certificates of deposit, including IRAs and brokered deposits. It also provides loan products comprising fixed and variable rate loans; funds for the purchase of business property or ventures, working capital lines, small business administration loans, and lease financing for equipment and for various other purposes; and home equity and home mortgages, as well as term loans for the purchase of consumer goods. In addition, it offers cash management, remote capture, Internet banking, letters of credit, and other lending services, as well as commercial sweep accounts; and various investment and insurance products, such as fixed and variable annuities, 401(k) plans and rollovers, stocks, self-directed and managed IRAs, bonds, mutual funds, brokerage, long term care insurance, 529 college savings plans, life insurance, separately managed investment accounts, disability insurance, and self-employed pension plans. Further, the company provides wealth management and trust services to individuals, businesses, and non-profit organizations; investment and fiduciary services, such as investment management, investment advisory, estate settlement, client bill paying, custody, financial planning, corporate trustee/trust administration, and power of attorney and guardian of the estate capacities; and safekeeping and other depository services, as well as securities brokerage and ATM services. It operates through 15 community offices located in Chester, Delaware, and Philadelphia counties, Pennsylvania. The company was founded in 1860 and is based in Downingtown, Pennsylvania.

Synovus Company Profile

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides various financial products and services. It offers integrated financial services, including commercial and retail banking, financial management, insurance, and mortgage services. The company's commercial banking services comprise cash management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans. Its retail banking services consist of accepting various types of demand and savings deposits; mortgage, installment, and other retail loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfer services; Internet based banking services; and bank credit card services, including MasterCard and Visa services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, asset management and financial planning services, and individual investment advice on equity and other securities, as well as trust services. As of December 31, 2017, it operated through 28 divisions and 250 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Financial Corporation was founded in 1888 and is headquartered in Columbus, Georgia.

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