Barclays vs Synchrony Financial

Barclays and Synchrony Financial are two prominent players in the financial services industry, each offering unique investment opportunities for shareholders. While Barclays is a well-established global bank with a diverse range of financial services, Synchrony Financial specializes in consumer financial products such as credit cards and installment loans. Investors looking to diversify their portfolios may consider comparing the strengths and weaknesses of these two companies to make informed decisions about potential stock investments.

Barclays or Synchrony Financial?

When comparing Barclays and Synchrony Financial, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Barclays and Synchrony Financial.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Barclays has a dividend yield of 4.42%, while Synchrony Financial has a dividend yield of 1.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Barclays reports a 5-year dividend growth of 9.63% year and a payout ratio of 0.00%. On the other hand, Synchrony Financial reports a 5-year dividend growth of 5.92% year and a payout ratio of 15.31%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Barclays P/E ratio at 29.74 and Synchrony Financial's P/E ratio at 7.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Barclays P/B ratio is 2.41 while Synchrony Financial's P/B ratio is 1.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Barclays has seen a 5-year revenue growth of -0.33%, while Synchrony Financial's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Barclays's ROE at 7.77% and Synchrony Financial's ROE at 20.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.28 for Barclays and $53.18 for Synchrony Financial. Over the past year, Barclays's prices ranged from $6.23 to $12.49, with a yearly change of 100.48%. Synchrony Financial's prices fluctuated between $27.30 and $54.78, with a yearly change of 100.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.