Synchrony Financial vs Affirm Which Is More Promising?

Synchrony Financial and Affirm are two prominent players in the financial services industry, each offering unique and competitive solutions for consumers and businesses alike. Synchrony Financial is a well-established company known for its credit card and consumer financing offerings, while Affirm is a fintech company disrupting the traditional lending model with its innovative buy now, pay later platform. Investors are closely watching these two stocks for their potential growth and performance in the ever-evolving financial technology landscape.

Synchrony Financial or Affirm?

When comparing Synchrony Financial and Affirm, 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 Synchrony Financial and Affirm.

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. Synchrony Financial has a dividend yield of 1.91%, while Affirm has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Synchrony Financial reports a 5-year dividend growth of 5.92% year and a payout ratio of 14.72%. On the other hand, Affirm reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Synchrony Financial P/E ratio at 8.13 and Affirm's P/E ratio at -40.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Synchrony Financial P/B ratio is 1.61 while Affirm's P/B ratio is 6.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Synchrony Financial has seen a 5-year revenue growth of 0.81%, while Affirm's is 4.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Synchrony Financial's ROE at 20.85% and Affirm's ROE at -16.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $64.38 for Synchrony Financial and $47.98 for Affirm. Over the past year, Synchrony Financial's prices ranged from $28.84 to $67.76, with a yearly change of 134.95%. Affirm's prices fluctuated between $21.88 and $57.76, with a yearly change of 163.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.