First AmericanSynovus

First American vs Synovus

This page compares First American Financial Corporation and Synovus Financial Corp., presenting a neutral overview of their business models, financial performance, and market context. It highlights si...

Which Baskets Do They Appear In?

The Great Mortgage Privatization

The Great Mortgage Privatization

The planned IPOs for mortgage giants Fannie Mae and Freddie Mac signal a historic shift toward privatization in the U.S. housing market. This move stands to benefit not only the investment banks managing the deal but also a wider ecosystem of mortgage lenders and insurers.

Published: August 11, 2025

Explore Basket

Investment Analysis

First American

Pros

  • Reported strong third quarter 2025 results with total revenue up 41% year-over-year and adjusted revenue growth of 14%.
  • Maintains a healthy debt-to-capital ratio of 33.0%, or 22.5% excluding secured financings, supporting financial stability.
  • Raised annual dividend by 2% to $2.20 per share, indicating shareholder return focus and confidence in cash flow.

Considerations

  • Net profit margin is relatively modest at around 6.8%, reflecting moderate profitability despite revenue growth.
  • Stock price has shown limited growth over the past 12 months, with forecasts suggesting a potential decline in the next year.
  • Exposure to cyclical real estate market risks due to heavy reliance on title insurance and related settlement services.
Synovus

Pros

  • Synovus has demonstrated balanced growth with a focus on both commercial and retail banking segments, enhancing revenue diversification.
  • Strong asset quality metrics with improving credit performance, supporting stable loan portfolio health and reducing credit risk.
  • Experienced management team with a clear strategy in expanding digital banking services to improve customer engagement and efficiency.

Considerations

  • Exposure to regional economic and interest rate fluctuations could impact net interest margin and loan demand.
  • Competitive pressure in the banking sector may limit margin expansion and challenge customer retention.
  • Recent regulatory compliance costs and investments may pressure short-term profitability and capital allocation.

Why invest with Nemo?

Nemo Logo Fade
🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Comparisons

First AmericanBlackstone Secured Lending

First American vs Blackstone Secured Lending

First American vs Blackstone Secured Lending

First AmericanValley

First American vs Valley

First American vs Valley

First AmericanMarketAxess

First American vs MarketAxess

First American vs MarketAxess

Frequently asked questions