WallStSmart

American Express Company (AXP)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 586% more annual revenue ($66.97B vs $9.76B). SYF leads profitability with a 36.4% profit margin vs 16.2%. AXP appears more attractively valued with a PEG of 1.54. SYF earns a higher WallStSmart Score of 71/100 (B).

AXP

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 10.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.13

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

AXPUndervalued (+42.5%)

Margin of Safety

+42.5%

Fair Value

$513.41

Current Price

$294.39

$219.02 discount

UndervaluedFair: $513.41Overvalued
SYFUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$178.92

Current Price

$65.17

$113.75 discount

UndervaluedFair: $178.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP3 strengths · Avg: 9.3/10
Market CapQuality
$205.42B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

Free Cash FlowQuality
$2.35B8/10

Generating 2.3B in free cash flow

SYF6 strengths · Avg: 9.5/10
P/E RatioValuation
6.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

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

Free Cash FlowQuality
$2.45B8/10

Generating 2.5B in free cash flow

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Debt/EquityHealth
1.733/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

SYF2 concerns · Avg: 2.0/10
PEG RatioValuation
3.182/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.032/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AXP

The strongest argument for AXP centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 17.5%. Revenue growth of 10.6% demonstrates continued momentum.

Bull Case : SYF

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

Bear Case : AXP

The primary concerns for AXP are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.73 is elevated, increasing financial risk.

Bear Case : SYF

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

Key Dynamics to Monitor

AXP profiles as a mature stock while SYF is a value play — different risk/reward profiles.

SYF carries more volatility with a beta of 1.41 — expect wider price swings.

AXP is growing revenue faster at 10.6% — 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 66/100), backed by strong 36.4% margins. AXP offers better value entry with a 42.5% margin of safety. Both earn "Strong Buy" and "Strong 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.

American Express Company

FINANCIAL SERVICES · CREDIT SERVICES · USA

The American Express Company is a multinational financial services corporation headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City.

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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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