WallStSmart

Credit Acceptance Corporation (CACC)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synchrony Financial generates 675% more annual revenue ($9.89B vs $1.28B). SYF leads profitability with a 36.4% profit margin vs 35.5%. CACC appears more attractively valued with a PEG of 1.15. SYF earns a higher WallStSmart Score of 77/100 (B+).

CACC

Strong Buy

75

out of 100

Grade: B+

Growth: 7.3Profit: 9.0Value: 6.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.67

SYF

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 6.3Quality: 4.8
Piotroski: 5/9Altman Z: 0.03

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CACC5 strengths · Avg: 9.0/10
Profit MarginProfitability
35.5%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
52.7%10/10

Strong operational efficiency at 52.7%

Return on EquityProfitability
29.9%9/10

Every $100 of equity generates 30 in profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
43.2%8/10

Earnings expanding 43.2% YoY

SYF6 strengths · Avg: 9.2/10
P/E RatioValuation
7.6x10/10

Attractively priced relative to earnings

Profit MarginProfitability
36.4%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
48.0%10/10

Strong operational efficiency at 48.0%

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

Areas to Watch

CACC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

Debt/EquityHealth
4.231/10

Elevated debt levels

SYF2 concerns · Avg: 3.0/10
PEG RatioValuation
2.134/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.032/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CACC

The strongest argument for CACC centers on Profit Margin, Operating Margin, Return on Equity. Profitability is solid with margins at 35.5% and operating margin at 52.7%. Revenue growth of 12.7% demonstrates continued momentum.

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 48.0%.

Bear Case : CACC

The primary concerns for CACC are Altman Z-Score, Debt/Equity. Debt-to-equity of 4.23 is elevated, increasing financial risk.

Bear Case : SYF

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

Key Dynamics to Monitor

CACC carries more volatility with a beta of 1.39 — expect wider price swings.

CACC is growing revenue faster at 12.7% — sustainability is the question.

SYF generates stronger free cash flow (2.2B), providing more financial flexibility.

Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SYF scores higher overall (77/100 vs 75/100), backed by strong 36.4% margins. 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.

Credit Acceptance Corporation

FINANCIAL SERVICES · CREDIT SERVICES · USA

Credit Acceptance Corporation offers financing programs and related products and services to independent and franchised automobile dealerships in the United States. The company is headquartered in Southfield, Michigan.

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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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