Which stock will give more? Synovus Financial Corp. (SNV) or Marriott International (MAR)

The shares of Synovus Financial Corp. (NYSE:SNV) and Marriott International (NASDAQ:MAR) were among the active stocks of the last trading sessions. Synovus Financial Corp. (NYSE:SNV) declined to -1.09% closing at the price of $45.53 whereas the shares of Marriott International (NASDAQ:MAR) declined -0.66% with the decrease of -0.8 points closing at the price of $119.77. Synovus Financial Corp. has currently decrease -7.74% in its stock over the period of 6-months while its rival Marriott International subtracted -9.29% in the previous 6-months.

Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.

Returns and Profitability

Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.

The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Synovus Financial Corp. (NYSE:SNV) is 23.5% while the ROI of Marriott International (NASDAQ:MAR) is 12.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SNV’s EBITDA Margin is NOT AVAILABLE whereas MAR’s is 17.79.

Both the profitability ratios suggest that Synovus Financial Corp. (NYSE:SNV) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Synovus Financial Corp. (NYSE:SNV) reported $0.91/share EPS for the previous quarter where analysts were predicting an EPS to be $0.88/share Thus beating the analyst Estimates with a Surprise Factor of 3.4 Percent. While, Marriott International (NASDAQ:MAR) reported EPS of $1.73/share in the last quarter. The analysts projected EPS of $1.38/share depicting a Surprise of 25.4 Percent.

Taking a look at Earnings per Share, Marriott International tends to be beating the analyst estimates more than Synovus Financial Corp.. so MAR is more profitable than SNV.

Technical Analysis of Synovus Financial Corp. & Marriott International

Moving average convergence divergence (MACD) shows that Synovus Financial Corp. (NYSE:SNV) is on a PRICE RELATIVITY trend While Marriott International (NASDAQ:MAR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Synovus Financial Corp. was in BEARISH territory and Marriott International was in BEARISH territory.

SNV’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While MAR’s candle is BEARISH with HIGH.

EPS Growth Rate: SNV’s 8% versus MAR’s 17.42%

Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Synovus Financial Corp. (NYSE:SNV) is predicted at 8% while Marriott International (NASDAQ:MAR) stands at 17.42%. These numbers suggest that MAR is more suitable investment in terms of EPS growth rate.

Financial Risk and Liquidity Concerns

The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of SNV stands at 0 while MAR is at 0.5 whereas the debt ratio of the prior is 0.58 while the debt ratio of the later is 3.16.

The values of the both ratios suggest that MAR is more suitable investment when the liquidity and risk is the main concern.

Analyst Recommendations

While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.7 for SNV and 2.4 for MAR which means SNV has Hold rating whereas MAR has Hold rating.

Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for SNV is $55.41 which is 17.83% of its current price while MAR has price target of 145.9 which is 17.91% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

SNV currently has price to earning P/E ratio of 14.45 whereas MAR has 19.86 while the forward P/E ratio for the prior stands at 11.22 and for the later it depicts the value of 18.62.

The price to Book P/B for SNV is 1.89, Price to Sale is at 4.32 and for MAR these ratios stand at 14.9 and 1.91.