Comprehensive Stock Comparison
Compare Bread Financial Holdings, Inc. (BFH) vs Synchrony Financial (SYF) 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 BFH's -7.3% |
| Value | BFH | Lower P/E (7.0x vs 7.5x) |
| Quality / Margins | SYF | 16.9% net margin vs BFH's 5.8% |
| Stability / Safety | BFH | Beta 1.47 vs SYF's 1.58 |
| Dividends | SYF | 1.4% yield, 3-year raise streak, vs BFH's 1.2% |
| Momentum (1Y) | BFH | +32.9% vs SYF's +15.9% |
| Efficiency (ROA) | SYF | 3.1% ROA vs BFH's 2.2%, ROIC 11.0% vs 3.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Bread Financial is a financial technology company that provides private-label and co-branded credit card programs along with point-of-sale installment lending solutions. It generates revenue primarily from interest income on its loan portfolio — which includes credit cards and buy-now-pay-later products — and from merchant fees for payment processing services. The company's competitive advantage lies in its established partnerships with over 130 retail brands and its integrated technology platform that embeds financing options directly into merchant checkout experiences.
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.
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 4 of 6 categories (Financial Metrics, Profitability & Efficiency). BFH leads in 2 (Valuation Metrics, Risk & Volatility).
Financial Metrics (TTM)
SYF is the larger business by revenue, generating $20.8B annually — 4.3x BFH's $4.8B. SYF is the more profitable business, keeping 16.9% of every revenue dollar as net income compared to BFH's 5.8%.
| Metric | BFHBread Financial H… | SYFSynchrony Financi… |
|---|---|---|
| RevenueTrailing 12 months | $4.8B | $20.8B |
| EBITDAEarnings before interest/tax | $623M | $5.1B |
| Net IncomeAfter-tax profit | $472M | $3.6B |
| Free Cash FlowCash after capex | $2.0B | $9.8B |
| Gross MarginGross profit ÷ Revenue | +50.9% | +45.2% |
| Operating MarginEBIT ÷ Revenue | +7.9% | +21.9% |
| Net MarginNet income ÷ Revenue | +5.8% | +16.9% |
| FCF MarginFCF ÷ Revenue | +38.7% | +47.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +100.0% | +47.4% |
Valuation Metrics
At 8.1x trailing earnings, SYF trades at a 37% valuation discount to BFH's 12.9x P/E. On an enterprise value basis, SYF's 5.1x EV/EBITDA is more attractive than BFH's 10.7x.
| Metric | BFHBread Financial H… | SYFSynchrony Financi… |
|---|---|---|
| Market CapShares × price | $3.1B | $24.9B |
| Enterprise ValueMkt cap + debt − cash | $5.1B | $25.6B |
| Trailing P/EPrice ÷ TTM EPS | 12.88x | 8.08x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.03x | 7.48x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.90x |
| EV / EBITDAEnterprise value multiple | 10.75x | 5.09x |
| Price / SalesMarket cap ÷ Revenue | 0.64x | 1.20x |
| Price / BookPrice ÷ Book value/share | 1.17x | 1.67x |
| Price / FCFMarket cap ÷ FCF | 1.64x | 2.53x |
Profitability & Efficiency
SYF delivers a 20.9% return on equity — every $100 of shareholder capital generates $21 in annual profit, vs $14 for BFH. SYF carries lower financial leverage with a 0.93x debt-to-equity ratio, signaling a more conservative balance sheet compared to BFH's 1.86x. On the Piotroski fundamental quality scale (0–9), SYF scores 8/9 vs BFH's 3/9, reflecting strong financial health.
| Metric | BFHBread Financial H… | SYFSynchrony Financi… |
|---|---|---|
| ROE (TTM)Return on equity | +14.2% | +20.9% |
| ROA (TTM)Return on assets | +2.2% | +3.1% |
| ROICReturn on invested capital | +3.3% | +11.0% |
| ROCEReturn on capital employed | +2.4% | +12.4% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 8 |
| Debt / EquityFinancial leverage | 1.86x | 0.93x |
| Net DebtTotal debt minus cash | $2.0B | $751M |
| Cash & Equiv.Liquid assets | $3.7B | $14.7B |
| Total DebtShort + long-term debt | $5.7B | $15.5B |
| Interest CoverageEBIT ÷ Interest expense | 0.61x | 1.08x |
Total Returns (with DRIP)
A $10,000 investment in SYF five years ago would be worth $18,520 today (with dividends reinvested), compared to $9,442 for BFH. Over the past 12 months, BFH leads with a +32.9% total return vs SYF's +15.9%. The 3-year compound annual growth rate (CAGR) favors SYF at 26.5% vs BFH's 21.4% — a key indicator of consistent wealth creation.
| Metric | BFHBread Financial H… | SYFSynchrony Financi… |
|---|---|---|
| YTD ReturnYear-to-date | -5.6% | -18.0% |
| 1-Year ReturnPast 12 months | +32.9% | +15.9% |
| 3-Year ReturnCumulative with dividends | +78.8% | +102.4% |
| 5-Year ReturnCumulative with dividends | -5.6% | +85.2% |
| 10-Year ReturnCumulative with dividends | -51.0% | +187.9% |
| CAGR (3Y)Annualised 3-year return | +21.4% | +26.5% |
Risk & Volatility
BFH is the less volatile stock with a 1.47 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. BFH currently trades 86.4% from its 52-week high vs SYF's 77.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BFHBread Financial H… | SYFSynchrony Financi… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.47x | 1.58x |
| 52-Week HighHighest price in past year | $82.03 | $88.77 |
| 52-Week LowLowest price in past year | $38.21 | $40.55 |
| % of 52W HighCurrent price vs 52-week peak | +86.4% | +77.9% |
| RSI (14)Momentum oscillator 0–100 | 60.7 | 49.5 |
| Avg Volume (50D)Average daily shares traded | 749K | 3.8M |
Analyst Outlook
Wall Street rates BFH as "Hold" and SYF as "Buy". Consensus price targets imply 30.3% upside for SYF (target: $90) vs 11.7% for BFH (target: $79). For income investors, SYF offers the higher dividend yield at 1.44% vs BFH's 1.20%.
| Metric | BFHBread Financial H… | SYFSynchrony Financi… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $79.17 | $90.08 |
| # AnalystsCovering analysts | 37 | 41 |
| Dividend YieldAnnual dividend ÷ price | +1.2% | +1.4% |
| Dividend StreakConsecutive years of raises | 1 | 3 |
| Dividend / ShareAnnual DPS | $0.85 | $0.99 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.8% | +4.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 100 | 106.64 | +6.6% |
| Synchrony Financial (SYF) | 100 | 252.65 | +152.6% |
Synchrony Financial (SYF) returned +85% over 5 years vs Bread Financial Hol… (BFH)'s -6%. A $10,000 investment in SYF 5 years ago would be worth $18,520 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | $6.4B | $4.8B | -25.5% |
| Synchrony Financial (SYF) | $10.9B | $20.8B | +90.8% |
Bread Financial Holdings, Inc.'s revenue grew from $6.4B (2015) to $4.8B (2024) — a -3.2% CAGR. Synchrony Financial's revenue grew from $10.9B (2015) to $20.8B (2024) — a 7.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 9.3% | 5.8% | -37.7% |
| Synchrony Financial (SYF) | 20.3% | 16.9% | -17.2% |
Bread Financial Holdings, Inc.'s net margin went from 9% (2015) to 6% (2024). Synchrony Financial's net margin went from 20% (2015) to 17% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 14.3 | 11.1 | -22.4% |
| Synchrony Financial (SYF) | 16 | 7.6 | -52.5% |
Bread Financial Holdings, Inc. has traded in a 2x–14x P/E range over 8 years; current trailing P/E is ~13x. Synchrony Financial has traded in a 5x–16x P/E range over 8 years; current trailing P/E is ~8x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 8.85 | 5.5 | -37.9% |
| Synchrony Financial (SYF) | 2.65 | 8.55 | +222.6% |
Bread Financial Holdings, Inc.'s EPS grew from $8.85 (2015) to $5.50 (2024) — a -5% CAGR. Synchrony Financial's EPS grew from $2.65 (2015) to $8.55 (2024) — a 14% CAGR.
Chart 6Free Cash Flow — 5 Years
Bread Financial Holdings, Inc. generated $2B FCF in 2024 (+27% vs 2021). Synchrony Financial generated $10B FCF in 2024 (+39% vs 2021).
BFH vs SYF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BFH or SYF 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 — BFH or SYF?
On trailing P/E, Synchrony Financial (SYF) is the cheapest at 8.1x versus Bread Financial Holdings, Inc. at 12.9x. On forward P/E, Bread Financial Holdings, Inc. is actually cheaper at 7.0x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — BFH or SYF?
Over the past 5 years, Synchrony Financial (SYF) delivered a total return of +85.2%, compared to -5.6% for Bread Financial Holdings, Inc. (BFH). A $10,000 investment in SYF five years ago would be worth approximately $19K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SYF returned +187.9% versus BFH's -51.0%. 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 — BFH or SYF?
By beta (market sensitivity over 5 years), Bread Financial Holdings, Inc. (BFH) is the lower-risk stock at 1.47β versus Synchrony Financial's 1.58β — meaning SYF is approximately 8% more volatile than BFH relative to the S&P 500. On balance sheet safety, Synchrony Financial (SYF) carries a lower debt/equity ratio of 93% versus 186% for Bread Financial Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — BFH or SYF?
Synchrony Financial (SYF) is the more profitable company, earning 16.9% net margin versus 5.8% for Bread Financial Holdings, Inc. — 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 7.9% for BFH. At the gross margin level — before operating expenses — BFH leads at 50.9%, 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 BFH or SYF more undervalued right now?
On forward earnings alone, Bread Financial Holdings, Inc. (BFH) trades at 7.0x forward P/E versus 7.5x for Synchrony Financial — 0.5x 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 — BFH or SYF?
All stocks in this comparison pay dividends. Synchrony Financial (SYF) offers the highest yield at 1.4%, versus 1.2% for Bread Financial Holdings, Inc. (BFH).
08Is BFH or SYF better for a retirement portfolio?
For long-horizon retirement investors, Synchrony Financial (SYF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.4% yield, +187.9% 10Y return). Both have compounded well over 10 years (SYF: +187.9%, BFH: -51.0%), 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 BFH and SYF?
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. 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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