WallStSmart

Nelnet Inc (NNI)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synchrony Financial generates 483% more annual revenue ($9.76B vs $1.67B). SYF leads profitability with a 36.4% profit margin vs 25.6%. NNI appears more attractively valued with a PEG of 0.46. SYF earns a higher WallStSmart Score of 71/100 (B).

NNI

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 7.0Value: 7.3Quality: 3.5
Piotroski: 7/9Altman Z: 0.87

SYF

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NNISignificantly Overvalued (-62.9%)

Margin of Safety

-62.9%

Fair Value

$80.17

Current Price

$128.32

$48.15 premium

UndervaluedFair: $80.17Overvalued
SYFUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$178.92

Current Price

$67.63

$111.29 discount

UndervaluedFair: $178.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NNI4 strengths · Avg: 9.8/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
25.6%9/10

Keeps 26 of every $100 in revenue as profit

SYF6 strengths · Avg: 9.2/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Profit MarginProfitability
36.4%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
48.5%10/10

Strong operational efficiency at 48.5%

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.45B8/10

Generating 2.5B in free cash flow

Areas to Watch

NNI4 concerns · Avg: 1.8/10
Revenue GrowthGrowth
-8.6%2/10

Revenue declined 8.6%

EPS GrowthGrowth
-7.6%2/10

Earnings declined 7.6%

Altman Z-ScoreHealth
0.872/10

Distress zone — elevated risk

Debt/EquityHealth
2.141/10

Elevated debt levels

SYF2 concerns · Avg: 2.0/10
PEG RatioValuation
3.272/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.032/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : NNI

The strongest argument for NNI centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 25.6% and operating margin at 17.7%. PEG of 0.46 suggests the stock is reasonably priced for its growth.

Bull Case : SYF

The strongest argument for SYF centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 36.4% and operating margin at 48.5%.

Bear Case : NNI

The primary concerns for NNI are Revenue Growth, EPS Growth, Altman Z-Score. Debt-to-equity of 2.14 is elevated, increasing financial risk.

Bear Case : SYF

The primary concerns for SYF are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

NNI profiles as a declining stock while SYF is a value play — different risk/reward profiles.

SYF carries more volatility with a beta of 1.41 — expect wider price swings.

SYF is growing revenue faster at 5.0% — sustainability is the question.

SYF generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

SYF scores higher overall (71/100 vs 58/100), backed by strong 36.4% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Nelnet Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Nelnet, Inc. is engaged in the loan management, communications and educational technology, services and payment processing businesses globally. The company is headquartered in Lincoln, Nebraska.

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Synchrony Financial

FINANCIAL SERVICES · CREDIT SERVICES · USA

Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.

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