![]() ![]() ![]() Looking at the company’s P/E over the last four years or so, its P/E is back to where it stood just before the pandemic-related plunge in early 2020. Meanwhile, the consumer finance industry is trading at a P/E of 9.7 times and a P/S ratio of 1.8 times, compared to the three-year averages of 11.5 times and 2.2 times, respectively.īased on its P/E, Synchrony looks undervalued relative to its industry and its industry’s history. Synchrony is currently trading at a price-to-earnings (P/E) ratio of 6.0 times and a price-to-earnings (P/S) ratio of 1.9 times. Still, due to its valuation and solid dividend yield, a bullish view looks appropriate for Synchrony, at least for now. However, Synchrony still hasn’t recovered its revenue to pre-pandemic levels, so its recovery is coming much more slowly than Ally’s. Synchrony Financial (NYSE:SYF)Ī quick review of Synchrony’s valuation and fundamentals reveals that the company looks undervalued relative to its sector and history. This could also be why Warren Buffett‘s Berkshire Hathaway ( NYSE:BRK.A) ( NYSE:BRK.B) owns one but not the other. So, is there any upside left for Ally or Synchrony in the near term? A closer look at their valuations suggests this could be a buy-the-dip opportunity, although ALLY is more enticing. Meanwhile, Synchrony has gained 10.6% year-to-date and 5.6% over the last 12 months despite a bumpy ride in 2022. Looking at the stock’s price action reveals a steady decline throughout 2022 until it hit bottom toward the end of December, so all the gains over the last 12 months have come since then. However, upon closer analysis, it looks like ALLY stock is better, although both stocks appear undervalued.Īlly is up more than 24% year-to-date but remains down 23.6% for the last 12 months. In this piece, I evaluated two consumer financial services stocks - Synchrony Financial ( NYSE:SYF) and Ally Financial ( NYSE:ALLY) - using TipRanks’ comparison tool to determine which is better. Both offer credit cards, with Synchrony issuing more than 100 cards, including Amazon’s credit cards, and Ally offering several cards of its own. ![]()
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