WallStSmart

Affirm Holdings Inc (AFRM)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synchrony Financial generates 163% more annual revenue ($9.76B vs $3.72B). SYF leads profitability with a 36.4% profit margin vs 7.6%. AFRM appears more attractively valued with a PEG of 0.20. SYF earns a higher WallStSmart Score of 71/100 (B).

AFRM

Buy

63

out of 100

Grade: C+

Growth: 9.3Profit: 5.0Value: 4.7Quality: 7.5
Piotroski: 4/9Altman Z: 1.31

SYF

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AFRMSignificantly Overvalued (-49.1%)

Margin of Safety

-49.1%

Fair Value

$37.91

Current Price

$45.05

$7.14 premium

UndervaluedFair: $37.91Overvalued
SYFUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$178.92

Current Price

$67.63

$111.29 discount

UndervaluedFair: $178.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AFRM3 strengths · Avg: 9.3/10
PEG RatioValuation
0.2010/10

Growing faster than its price suggests

EPS GrowthGrowth
59.3%10/10

Earnings expanding 59.3% YoY

Revenue GrowthGrowth
29.6%8/10

Revenue surging 29.6% year-over-year

SYF6 strengths · Avg: 9.2/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Profit MarginProfitability
36.4%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
48.5%10/10

Strong operational efficiency at 48.5%

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.45B8/10

Generating 2.5B in free cash flow

Areas to Watch

AFRM3 concerns · Avg: 2.3/10
Profit MarginProfitability
7.6%3/10

7.6% margin — thin

P/E RatioValuation
55.3x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.312/10

Distress zone — elevated risk

SYF2 concerns · Avg: 2.0/10
PEG RatioValuation
3.272/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.032/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AFRM

The strongest argument for AFRM centers on PEG Ratio, EPS Growth, Revenue Growth. Revenue growth of 29.6% demonstrates continued momentum. PEG of 0.20 suggests the stock is reasonably priced for its growth.

Bull Case : SYF

The strongest argument for SYF centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 36.4% and operating margin at 48.5%.

Bear Case : AFRM

The primary concerns for AFRM are Profit Margin, P/E Ratio, Altman Z-Score. A P/E of 55.3x leaves little room for execution misses.

Bear Case : SYF

The primary concerns for SYF are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

AFRM profiles as a growth stock while SYF is a value play — different risk/reward profiles.

AFRM carries more volatility with a beta of 3.73 — expect wider price swings.

AFRM is growing revenue faster at 29.6% — sustainability is the question.

SYF generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

SYF scores higher overall (71/100 vs 63/100), backed by strong 36.4% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Affirm Holdings Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Affirm Holdings, Inc. operates a platform for digital and mobile commerce in the United States and Canada. The company is headquartered in San Francisco, California.

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Synchrony Financial

FINANCIAL SERVICES · CREDIT SERVICES · USA

Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.

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