Valuing 2 Stocks Using Ratios and Multiples: Synchrony Financial (SYF), Platform Specialty Products Corporation (PAH)

Synchrony Financial (NYSE:SYF) shares were trading higher by 0.21 percent ($0.08) at $37.39 a piece in Wednesday’s session. It had closed the previous session at $37.31. SYF trades with a P/S ratio of 1.83. This is lower than the both industry’s 8.57 and the wider sector’s 6.05. A low price-to-sales ratio, typically less than 1.0, is considered a good value. Also, it has an estimated price-earnings (P/E) multiple of 11.75 and a trailing 12-month price-earnings (P/E) multiple of 14.24. Shares of SYF have uptrended 28.66% in the past three months, while the S&P 500 has moved 16.75% in that time. Synchrony Financial (SYF) has a market cap of $29.44 billion and over the last 12 months, Synchrony Financial (NYSE:SYF) has gone stronger by 4.85%. During the last 52 weeks, the (NYSE:SYF) price has been as high as $38.06 and as low as $26.01. Synchrony Financial earnings have risen with an annualized rate of 3.5% over the last 5 years.

Synchrony Financial (Mean Target Price: $38.19)

The average 1-year price target for Synchrony Financial (SYF) — averaging the work of different analysts — reveals a mean PT of $38.19/share. That’s a potential 2.14 increase relative to where Synchrony Financial (NYSE:SYF) has been trading recently. The current price is seen ranging between $37.04 and $37.6. There are brokerage firms with lower targets than the average, including one setting a price target of $33. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $44.

Synchrony Financial (SYF) Consensus Recommendation

The collective rating of 2.1 for Synchrony Financial (NYSE:SYF) also leans strongly towards the neutral end of the spectrum. Of the 22 analysts surveyed by Reuters that track SYF 8 of them rate its stock a hold. The other 14, though not evenly; between analysts who think you should buy Synchrony Financial versus those who think you should sell it. A 14 analysts rate it as either a buy or a strong buy, while0 believe that investors should either steer clear of SYF or, if they already own its stock, sell it.

Is Platform Specialty Products Corporation (NYSE:PAH) Cheap From Peers?

Platform Specialty Products Corporation (PAH) pulled off a 0.21 percent gain and now trades for $9.62. PAH comes in with a P/S ratio of 0.75 that’s below 1, potentially implying that it could be cheap relative to the overall sector (3.03) and its peers (1.58). Also, it has an estimated price-earnings (P/E) multiple of 10.05 . During the last 52 weeks, the price has been as high as $14.82 and as low as $9.11. Platform Specialty Products Corporation (NYSE:PAH) earnings have risen with a quarterly rate of 37.5% over the last 5 years. Shares of PAH have sank -16.2% in the past three monthswhile the S&P 500 has dropped -22.78% in that time.

Platform Specialty Products Corporation (Price Objective: $14.45)

Platform Specialty Products Corporation (NYSE:PAH) has a market cap of $2.73 billion and over the last 12 months, PAH has declined by -1.43%. The average 1-year price target for (PAH) reveals an average price target of $14.45 per share. That’s a potential 50.21 gain from where (NYSE:PAH) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $12. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $17.

Analyst Thoughts About Platform Specialty Products Corporation (NYSE:PAH)

The consensus recommendation — averaging the work of 12 analysts — of 2.2 for Platform Specialty Products Corporation (PAH) points to moderate case. Of the analysts surveyed by Reuters that track Platform Specialty Products Corporation 4 of them rate its stock a hold. The other 8 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 8 analysts rate it as either a buy or a strong buy, while 0 believe that investors should either steer clear of (NYSE:PAH) or, if they already own its stock, sell it.