Encore Capital Group Inc (ECPG)vsSynchrony Financial (SYF)
ECPG
Encore Capital Group Inc
$81.46
+1.07%
FINANCIAL SERVICES · Cap: $1.71B
SYF
Synchrony Financial
$70.77
+1.73%
FINANCIAL SERVICES · Cap: $24.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Synchrony Financial generates 434% more annual revenue ($9.89B vs $1.85B). SYF leads profitability with a 36.4% profit margin vs 16.0%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 90/100 (A).
ECPG
Exceptional Buy90
out of 100
Grade: A
SYF
Strong Buy77
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 38.7%
Earnings expanding 100.0% YoY
Every $100 of equity generates 29 in profit
Reasonable price relative to book value
Attractively priced relative to earnings
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 48.0%
Every $100 of equity generates 22 in profit
Reasonable price relative to book value
Earnings expanding 20.1% YoY
Areas to Watch
Smaller company, higher risk/reward
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ECPG
The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 16.0% and operating margin at 38.7%. Revenue growth of 21.0% 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 : ECPG
The primary concerns for ECPG are Market Cap, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.90 is elevated, increasing financial risk.
Bear Case : SYF
The primary concerns for SYF are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
ECPG profiles as a growth stock while SYF is a mature play — different risk/reward profiles.
ECPG carries more volatility with a beta of 1.33 — expect wider price swings.
ECPG is growing revenue faster at 21.0% — sustainability is the question.
SYF generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
ECPG scores higher overall (90/100 vs 77/100), backed by strong 16.0% margins and 21.0% revenue growth. Both earn "Exceptional 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.
Encore Capital Group Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.
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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