WallStSmart

Synchrony Financial (SYF)vsVisa Inc. Class A (V)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Visa Inc. Class A generates 324% more annual revenue ($41.39B vs $9.76B). V leads profitability with a 50.2% profit margin vs 36.4%. V appears more attractively valued with a PEG of 1.70. SYF earns a higher WallStSmart Score of 71/100 (B).

SYF

Strong Buy

71

out of 100

Grade: B

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

V

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 10.0Value: 9.3Quality: 6.5
Piotroski: 4/9Altman Z: 1.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SYFUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$178.92

Current Price

$65.17

$113.75 discount

UndervaluedFair: $178.92Overvalued
VUndervalued (+18.7%)

Margin of Safety

+18.7%

Fair Value

$368.57

Current Price

$299.02

$69.55 discount

UndervaluedFair: $368.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SYF6 strengths · Avg: 9.5/10
P/E RatioValuation
6.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

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

Free Cash FlowQuality
$2.45B8/10

Generating 2.5B in free cash flow

V5 strengths · Avg: 9.6/10
Market CapQuality
$597.90B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
53.9%10/10

Every $100 of equity generates 54 in profit

Profit MarginProfitability
50.2%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
68.3%10/10

Strong operational efficiency at 68.3%

Free Cash FlowQuality
$6.40B8/10

Generating 6.4B in free cash flow

Areas to Watch

SYF2 concerns · Avg: 2.0/10
PEG RatioValuation
3.182/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.032/10

Distress zone — elevated risk

V4 concerns · Avg: 4.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
29.1x4/10

Moderate valuation

Price/BookValuation
14.9x4/10

Trading at 14.9x book value

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SYF

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

Bull Case : V

The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : SYF

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

Bear Case : V

The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

SYF profiles as a value stock while V is a mature play — different risk/reward profiles.

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

V is growing revenue faster at 14.6% — sustainability is the question.

V generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

SYF scores higher overall (71/100 vs 68/100), backed by strong 36.4% margins. V offers better value entry with a 18.7% margin of safety. Both earn "Strong Buy" and "Strong 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.

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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Visa Inc. Class A

FINANCIAL SERVICES · CREDIT SERVICES · USA

Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.

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