Comprehensive Stock Comparison
Compare Lufax Holding Ltd (LU) 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 LU's -39.6% |
| Value | LU | Lower P/E (0.6x vs 7.5x) |
| Quality / Margins | SYF | 16.9% net margin vs LU's 2.1% |
| Stability / Safety | LU | Beta 1.07 vs SYF's 1.58, lower leverage |
| Dividends | LU | 28.1% yield, vs SYF's 1.4% |
| Momentum (1Y) | SYF | +15.9% vs LU's -10.3% |
| Efficiency (ROA) | SYF | 3.1% ROA vs LU's -1.6%, ROIC 11.0% vs 7.7% |
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
Lufax is a Chinese technology-empowered personal financial services platform that connects borrowers with lenders and investors with wealth management products. It generates revenue primarily through loan facilitation fees from its credit business — which accounts for the majority of income — and service fees from its wealth management platform. The company's key advantage is its proprietary technology platform that uses big data and AI for risk assessment, creating a scalable ecosystem that serves both retail and institutional clients.
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.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
SYF leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). LU leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
LU is the larger business by revenue, generating $41.7B annually — 2.0x SYF's $20.8B. SYF is the more profitable business, keeping 16.9% of every revenue dollar as net income compared to LU's 2.1%.
| Metric | LULufax Holding Ltd | SYFSynchrony Financi… |
|---|---|---|
| RevenueTrailing 12 months | $41.7B | $20.8B |
| EBITDAEarnings before interest/tax | -$1.3B | $5.1B |
| Net IncomeAfter-tax profit | -$3.4B | $3.6B |
| Free Cash FlowCash after capex | $8.6B | $9.8B |
| Gross MarginGross profit ÷ Revenue | +69.5% | +45.2% |
| Operating MarginEBIT ÷ Revenue | +35.5% | +21.9% |
| Net MarginNet income ÷ Revenue | +2.1% | +16.9% |
| FCF MarginFCF ÷ Revenue | +35.9% | +47.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -10.6% | +47.4% |
Valuation Metrics
At 5.8x trailing earnings, LU trades at a 28% valuation discount to SYF's 8.1x P/E. On an enterprise value basis, LU's 1.3x EV/EBITDA is more attractive than SYF's 5.1x.
| Metric | LULufax Holding Ltd | SYFSynchrony Financi… |
|---|---|---|
| Market CapShares × price | $2.3B | $24.9B |
| Enterprise ValueMkt cap + debt − cash | $3.0B | $25.6B |
| Trailing P/EPrice ÷ TTM EPS | 5.79x | 8.08x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.56x | 7.48x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.90x |
| EV / EBITDAEnterprise value multiple | 1.32x | 5.09x |
| Price / SalesMarket cap ÷ Revenue | 0.37x | 1.20x |
| Price / BookPrice ÷ Book value/share | 0.05x | 1.67x |
| Price / FCFMarket cap ÷ FCF | 1.03x | 2.53x |
Profitability & Efficiency
SYF delivers a 20.9% return on equity — every $100 of shareholder capital generates $21 in annual profit, vs $-4 for LU. LU carries lower financial leverage with a 0.48x debt-to-equity ratio, signaling a more conservative balance sheet compared to SYF's 0.93x. On the Piotroski fundamental quality scale (0–9), SYF scores 8/9 vs LU's 5/9, reflecting strong financial health.
| Metric | LULufax Holding Ltd | SYFSynchrony Financi… |
|---|---|---|
| ROE (TTM)Return on equity | -3.9% | +20.9% |
| ROA (TTM)Return on assets | -1.6% | +3.1% |
| ROICReturn on invested capital | +7.7% | +11.0% |
| ROCEReturn on capital employed | +5.1% | +12.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 8 |
| Debt / EquityFinancial leverage | 0.48x | 0.93x |
| Net DebtTotal debt minus cash | $4.9B | $751M |
| Cash & Equiv.Liquid assets | $40.0B | $14.7B |
| Total DebtShort + long-term debt | $44.9B | $15.5B |
| Interest CoverageEBIT ÷ Interest expense | -0.12x | 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 $1,185 for LU. Over the past 12 months, SYF leads with a +15.9% total return vs LU's -10.3%. The 3-year compound annual growth rate (CAGR) favors SYF at 26.5% vs LU's -15.0% — a key indicator of consistent wealth creation.
| Metric | LULufax Holding Ltd | SYFSynchrony Financi… |
|---|---|---|
| YTD ReturnYear-to-date | -3.3% | -18.0% |
| 1-Year ReturnPast 12 months | -10.3% | +15.9% |
| 3-Year ReturnCumulative with dividends | -38.5% | +102.4% |
| 5-Year ReturnCumulative with dividends | -88.1% | +85.2% |
| 10-Year ReturnCumulative with dividends | -85.7% | +187.9% |
| CAGR (3Y)Annualised 3-year return | -15.0% | +26.5% |
Risk & Volatility
LU is the less volatile stock with a 1.07 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. SYF currently trades 77.9% from its 52-week high vs LU's 56.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LULufax Holding Ltd | SYFSynchrony Financi… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.07x | 1.58x |
| 52-Week HighHighest price in past year | $4.57 | $88.77 |
| 52-Week LowLowest price in past year | $2.30 | $40.55 |
| % of 52W HighCurrent price vs 52-week peak | +56.9% | +77.9% |
| RSI (14)Momentum oscillator 0–100 | 46.7 | 49.5 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 3.8M |
Analyst Outlook
Wall Street rates LU as "Buy" and SYF as "Buy". Consensus price targets imply 33.8% upside for LU (target: $3) vs 30.3% for SYF (target: $90). For income investors, LU offers the higher dividend yield at 28.06% vs SYF's 1.44%.
| Metric | LULufax Holding Ltd | SYFSynchrony Financi… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $3.48 | $90.08 |
| # AnalystsCovering analysts | 13 | 41 |
| Dividend YieldAnnual dividend ÷ price | +28.1% | +1.4% |
| Dividend StreakConsecutive years of raises | 0 | 3 |
| Dividend / ShareAnnual DPS | $5.01 | $0.99 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +4.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 20 | Feb 26 | Change |
|---|---|---|---|
| Lufax Holding Ltd (LU) | 100 | 5.06 | -94.9% |
| Synchrony Financial (SYF) | 100 | 283.2 | +183.2% |
Synchrony Financial (SYF) returned +85% over 5 years vs Lufax Holding Ltd (LU)'s -88%. 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 |
|---|---|---|---|
| Lufax Holding Ltd (LU) | $32.3B | $41.7B | +28.9% |
| Synchrony Financial (SYF) | $10.9B | $20.8B | +90.8% |
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 |
|---|---|---|---|
| Lufax Holding Ltd (LU) | 18.4% | 2.1% | -88.5% |
| Synchrony Financial (SYF) | 20.3% | 16.9% | -17.2% |
Synchrony Financial's net margin went from 20% (2015) to 17% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Lufax Holding Ltd (LU) | 1.3 | 1 | -23.1% |
| Synchrony Financial (SYF) | 16 | 7.6 | -52.5% |
Lufax Holding Ltd has traded in a 0x–1x P/E range over 4 years; current trailing P/E is ~6x. 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 |
|---|---|---|---|
| Lufax Holding Ltd (LU) | 22.42 | 3.08 | -86.3% |
| Synchrony Financial (SYF) | 2.65 | 8.55 | +222.6% |
Synchrony Financial's EPS grew from $2.65 (2015) to $8.55 (2024) — a 14% CAGR.
Chart 6Free Cash Flow — 5 Years
Lufax Holding Ltd generated $15B FCF in 2023 (+210% vs 2021). Synchrony Financial generated $10B FCF in 2024 (+39% vs 2021).
LU vs SYF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LU or SYF a better buy right now?
Lufax Holding Ltd (LU) offers the better valuation at 5.8x trailing P/E (0.6x forward), making it the more compelling value choice. Analysts rate Lufax Holding Ltd (LU) a "Buy" — based on 13 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 — LU or SYF?
On trailing P/E, Lufax Holding Ltd (LU) is the cheapest at 5.8x versus Synchrony Financial at 8.1x. On forward P/E, Lufax Holding Ltd is actually cheaper at 0.6x.
03Which is the better long-term investment — LU or SYF?
Over the past 5 years, Synchrony Financial (SYF) delivered a total return of +85.2%, compared to -88.1% for Lufax Holding Ltd (LU). 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 LU's -85.7%. 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 — LU or SYF?
By beta (market sensitivity over 5 years), Lufax Holding Ltd (LU) is the lower-risk stock at 1.07β versus Synchrony Financial's 1.58β — meaning SYF is approximately 48% more volatile than LU relative to the S&P 500. On balance sheet safety, Lufax Holding Ltd (LU) carries a lower debt/equity ratio of 48% versus 93% for Synchrony Financial — giving it more financial flexibility in a downturn.
05Which has better profit margins — LU or SYF?
Synchrony Financial (SYF) is the more profitable company, earning 16.9% net margin versus 2.1% for Lufax Holding Ltd — meaning it keeps 16.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LU leads at 35.5% versus 21.9% for SYF. At the gross margin level — before operating expenses — LU leads at 69.5%, 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 LU or SYF more undervalued right now?
On forward earnings alone, Lufax Holding Ltd (LU) trades at 0.6x forward P/E versus 7.5x for Synchrony Financial — 6.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LU: 33.8% to $3.48.
07Which pays a better dividend — LU or SYF?
All stocks in this comparison pay dividends. Lufax Holding Ltd (LU) offers the highest yield at 28.1%, versus 1.4% for Synchrony Financial (SYF).
08Is LU or SYF better for a retirement portfolio?
For long-horizon retirement investors, Lufax Holding Ltd (LU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.07), 28.1% yield). 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 (LU: -85.7%, 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 LU 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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- Sector: Financial Services
- Market Cap > $100B
- Gross Margin > 41%
- Dividend Yield > 11.2%