Comprehensive Stock Comparison
Compare Synchrony Financial (SYF) vs American Express Company (AXP) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | SYF | 19.7% revenue growth vs AXP's 10.1% |
| Value | SYF | Lower P/E (7.5x vs 17.6x), PEG 0.83 vs 1.48 |
| Quality / Margins | SYF | 16.9% net margin vs AXP's 13.7% |
| Stability / Safety | AXP | Beta 1.35 vs SYF's 1.58 |
| Dividends | SYF | 1.4% yield, 3-year raise streak, vs AXP's 0.9% |
| Momentum (1Y) | SYF | +15.9% vs AXP's +3.7% |
| Efficiency (ROA) | AXP | 3.5% ROA vs SYF's 3.1%, ROIC 12.2% vs 11.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Synchrony Financial is a consumer financial services company that specializes in private label credit cards and installment loans for retail partners. It generates revenue primarily from interest income on its credit products — about 80% of total revenue — along with interchange fees and merchant discount revenue. Its key competitive advantage is deep, long-term partnerships with major retailers — like Amazon, Lowe's, and Walmart — which provide a captive customer base and predictable transaction volume.
American Express is a global payments and financial services company that issues charge and credit cards to consumers and businesses. It generates revenue primarily from discount fees charged to merchants — typically 2-3% of transaction value — and cardmember fees, with additional income from interest on revolving balances and travel services. Its key competitive advantage is its premium brand positioning and closed-loop network — which allows it to control both card issuance and merchant acceptance while collecting rich transaction data.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
SYF leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). AXP leads in 1 (Risk & Volatility). 2 tied.
Financial Metrics (TTM)
AXP is the larger business by revenue, generating $74.2B annually — 3.6x SYF's $20.8B. Profitability is closely matched — net margins range from 16.9% (SYF) to 13.7% (AXP).
| Metric | SYFSynchrony Financi… | AXPAmerican Express … |
|---|---|---|
| RevenueTrailing 12 months | $20.8B | $74.2B |
| EBITDAEarnings before interest/tax | $5.1B | $15.2B |
| Net IncomeAfter-tax profit | $3.6B | $10.5B |
| Free Cash FlowCash after capex | $9.8B | $18.9B |
| Gross MarginGross profit ÷ Revenue | +45.2% | +81.9% |
| Operating MarginEBIT ÷ Revenue | +21.9% | +17.4% |
| Net MarginNet income ÷ Revenue | +16.9% | +13.7% |
| FCF MarginFCF ÷ Revenue | +47.4% | +16.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +47.4% | +18.6% |
Valuation Metrics
At 8.1x trailing earnings, SYF trades at a 63% valuation discount to AXP's 22.0x P/E. Adjusting for growth (PEG ratio), SYF offers better value at 0.90x vs AXP's 1.85x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SYFSynchrony Financi… | AXPAmerican Express … |
|---|---|---|
| Market CapShares × price | $24.9B | $212.8B |
| Enterprise ValueMkt cap + debt − cash | $25.6B | $223.4B |
| Trailing P/EPrice ÷ TTM EPS | 8.08x | 22.03x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.48x | 17.58x |
| PEG RatioP/E ÷ EPS growth rate | 0.90x | 1.85x |
| EV / EBITDAEnterprise value multiple | 5.09x | 15.33x |
| Price / SalesMarket cap ÷ Revenue | 1.20x | 2.87x |
| Price / BookPrice ÷ Book value/share | 1.67x | 7.28x |
| Price / FCFMarket cap ÷ FCF | 2.53x | 17.53x |
Profitability & Efficiency
AXP delivers a 32.5% return on equity — every $100 of shareholder capital generates $33 in annual profit, vs $21 for SYF. SYF carries lower financial leverage with a 0.93x debt-to-equity ratio, signaling a more conservative balance sheet compared to AXP's 1.69x. On the Piotroski fundamental quality scale (0–9), SYF scores 8/9 vs AXP's 7/9, reflecting strong financial health.
| Metric | SYFSynchrony Financi… | AXPAmerican Express … |
|---|---|---|
| ROE (TTM)Return on equity | +20.9% | +32.5% |
| ROA (TTM)Return on assets | +3.1% | +3.5% |
| ROICReturn on invested capital | +11.0% | +12.2% |
| ROCEReturn on capital employed | +12.4% | +11.2% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 7 |
| Debt / EquityFinancial leverage | 0.93x | 1.69x |
| Net DebtTotal debt minus cash | $751M | $10.5B |
| Cash & Equiv.Liquid assets | $14.7B | $40.6B |
| Total DebtShort + long-term debt | $15.5B | $51.1B |
| Interest CoverageEBIT ÷ Interest expense | 1.08x | 1.64x |
Total Returns (with DRIP)
A $10,000 investment in AXP five years ago would be worth $23,155 today (with dividends reinvested), compared to $18,520 for SYF. Over the past 12 months, SYF leads with a +15.9% total return vs AXP's +3.7%. The 3-year compound annual growth rate (CAGR) favors SYF at 26.5% vs AXP's 22.2% — a key indicator of consistent wealth creation.
| Metric | SYFSynchrony Financi… | AXPAmerican Express … |
|---|---|---|
| YTD ReturnYear-to-date | -18.0% | -16.9% |
| 1-Year ReturnPast 12 months | +15.9% | +3.7% |
| 3-Year ReturnCumulative with dividends | +102.4% | +82.4% |
| 5-Year ReturnCumulative with dividends | +85.2% | +131.5% |
| 10-Year ReturnCumulative with dividends | +187.9% | +491.2% |
| CAGR (3Y)Annualised 3-year return | +26.5% | +22.2% |
Risk & Volatility
AXP is the less volatile stock with a 1.35 beta — it tends to amplify market swings less than SYF's 1.58 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | SYFSynchrony Financi… | AXPAmerican Express … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.58x | 1.35x |
| 52-Week HighHighest price in past year | $88.77 | $387.49 |
| 52-Week LowLowest price in past year | $40.55 | $220.43 |
| % of 52W HighCurrent price vs 52-week peak | +77.9% | +79.7% |
| RSI (14)Momentum oscillator 0–100 | 49.5 | 42.2 |
| Avg Volume (50D)Average daily shares traded | 3.8M | 2.4M |
Analyst Outlook
Wall Street rates SYF as "Buy" and AXP as "Hold". Consensus price targets imply 30.3% upside for SYF (target: $90) vs 21.3% for AXP (target: $375). For income investors, SYF offers the higher dividend yield at 1.44% vs AXP's 0.91%.
| Metric | SYFSynchrony Financi… | AXPAmerican Express … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $90.08 | $374.58 |
| # AnalystsCovering analysts | 41 | 56 |
| Dividend YieldAnnual dividend ÷ price | +1.4% | +0.9% |
| Dividend StreakConsecutive years of raises | 3 | 14 |
| Dividend / ShareAnnual DPS | $0.99 | $2.80 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.0% | +2.8% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Synchrony Financial (SYF) | 100 | 241.92 | +141.9% |
| American Express Co… (AXP) | 100 | 309.85 | +209.9% |
American Express Co… (AXP) returned +132% over 5 years vs Synchrony Financial (SYF)'s +85%. A $10,000 investment in AXP 5 years ago would be worth $23,155 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Synchrony Financial (SYF) | $10.9B | $20.8B | +90.8% |
| American Express Co… (AXP) | $34.4B | $74.2B | +115.8% |
Synchrony Financial's revenue grew from $10.9B (2015) to $20.8B (2024) — a 7.4% CAGR. American Express Company's revenue grew from $34.4B (2015) to $74.2B (2024) — a 8.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Synchrony Financial (SYF) | 20.3% | 16.9% | -17.2% |
| American Express Co… (AXP) | 15.0% | 13.7% | -9.1% |
Synchrony Financial's net margin went from 20% (2015) to 17% (2024). American Express Company's net margin went from 15% (2015) to 14% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Synchrony Financial (SYF) | 16 | 7.6 | -52.5% |
| American Express Co… (AXP) | 33.4 | 21.2 | -36.5% |
Synchrony Financial has traded in a 5x–16x P/E range over 8 years; current trailing P/E is ~8x. American Express Company has traded in a 12x–33x P/E range over 8 years; current trailing P/E is ~22x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Synchrony Financial (SYF) | 2.65 | 8.55 | +222.6% |
| American Express Co… (AXP) | 5.05 | 14.02 | +177.6% |
Synchrony Financial's EPS grew from $2.65 (2015) to $8.55 (2024) — a 14% CAGR. American Express Company's EPS grew from $5.05 (2015) to $14.02 (2024) — a 12% CAGR.
Chart 6Free Cash Flow — 5 Years
Synchrony Financial generated $10B FCF in 2024 (+39% vs 2021). American Express Company generated $12B FCF in 2024 (-7% vs 2021).
SYF vs AXP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SYF or AXP a better buy right now?
Synchrony Financial (SYF) offers the better valuation at 8.1x trailing P/E (7.5x forward), making it the more compelling value choice. Analysts rate Synchrony Financial (SYF) a "Buy" — based on 41 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — SYF or AXP?
On trailing P/E, Synchrony Financial (SYF) is the cheapest at 8.1x versus American Express Company at 22.0x. On forward P/E, Synchrony Financial is actually cheaper at 7.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Synchrony Financial wins at 0.83x versus American Express Company's 1.48x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SYF or AXP?
Over the past 5 years, American Express Company (AXP) delivered a total return of +131.5%, compared to +85.2% for Synchrony Financial (SYF). A $10,000 investment in AXP five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AXP returned +491.2% versus SYF's +187.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SYF or AXP?
By beta (market sensitivity over 5 years), American Express Company (AXP) is the lower-risk stock at 1.35β versus Synchrony Financial's 1.58β — meaning SYF is approximately 18% more volatile than AXP relative to the S&P 500. On balance sheet safety, Synchrony Financial (SYF) carries a lower debt/equity ratio of 93% versus 169% for American Express Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — SYF or AXP?
Synchrony Financial (SYF) is the more profitable company, earning 16.9% net margin versus 13.7% for American Express Company — meaning it keeps 16.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SYF leads at 21.9% versus 17.4% for AXP. At the gross margin level — before operating expenses — AXP leads at 81.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is SYF or AXP more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Synchrony Financial (SYF) is the more undervalued stock at a PEG of 0.83x versus American Express Company's 1.48x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Synchrony Financial (SYF) trades at 7.5x forward P/E versus 17.6x for American Express Company — 10.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SYF: 30.3% to $90.08.
07Which pays a better dividend — SYF or AXP?
All stocks in this comparison pay dividends. Synchrony Financial (SYF) offers the highest yield at 1.4%, versus 0.9% for American Express Company (AXP).
08Is SYF or AXP better for a retirement portfolio?
For long-horizon retirement investors, American Express Company (AXP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.9% yield, +491.2% 10Y return). Synchrony Financial (SYF) carries a higher beta of 1.58 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AXP: +491.2%, SYF: +187.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between SYF and AXP?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: SYF is a mid-cap deep-value stock; AXP is a large-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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