Macy's vs Synchrony Financial Which Is Stronger?

Macy's and Synchrony Financial are two prominent companies in the retail industry, with Macy's being a renowned department store and Synchrony Financial being a major player in consumer financial services. Both companies have experienced fluctuations in their stock prices in recent years, impacted by economic trends and changing consumer behavior. Investors are closely monitoring their performances, analyzing metrics such as revenue growth, profitability, and market share to make informed decisions about their investments in Macy's and Synchrony Financial stocks.

Macy's or Synchrony Financial?

When comparing Macy's 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 Macy's 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. Macy's has a dividend yield of 4.21%, while Synchrony Financial has a dividend yield of 1.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Macy's reports a 5-year dividend growth of -15.21% year and a payout ratio of 102.19%. On the other hand, Synchrony Financial reports a 5-year dividend growth of 5.92% year and a payout ratio of 14.72%.

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 Macy's P/E ratio at 24.62 and Synchrony Financial's P/E ratio at 8.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Macy's P/B ratio is 0.26 while Synchrony Financial's P/B ratio is 1.68.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Macy's has seen a 5-year revenue growth of 0.04%, while Synchrony Financial's is 0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Macy's's ROE at 2.45% and Synchrony Financial's ROE at 20.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.21 for Macy's and $67.65 for Synchrony Financial. Over the past year, Macy's's prices ranged from $14.06 to $22.10, with a yearly change of 57.18%. Synchrony Financial's prices fluctuated between $35.29 and $69.39, with a yearly change of 96.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.