WallStSmart

Mastercard Inc (MA)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Mastercard Inc generates 236% more annual revenue ($32.79B vs $9.76B). MA leads profitability with a 45.7% profit margin vs 36.4%. MA appears more attractively valued with a PEG of 1.63. SYF earns a higher WallStSmart Score of 71/100 (B).

MA

Strong Buy

70

out of 100

Grade: B

Growth: 8.0Profit: 10.0Value: 10.0Quality: 6.0
Piotroski: 6/9Altman Z: 4.08

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

MAUndervalued (+34.7%)

Margin of Safety

+34.7%

Fair Value

$752.45

Current Price

$488.47

$263.98 discount

UndervaluedFair: $752.45Overvalued
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

MA6 strengths · Avg: 9.7/10
Market CapQuality
$453.80B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
209.9%10/10

Every $100 of equity generates 210 in profit

Profit MarginProfitability
45.7%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
57.7%10/10

Strong operational efficiency at 57.7%

Altman Z-ScoreHealth
4.0810/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

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

MA4 concerns · Avg: 2.8/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

P/E RatioValuation
30.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
56.5x2/10

Trading at 56.5x book value

Debt/EquityHealth
2.451/10

Elevated debt levels

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 : MA

The strongest argument for MA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.7% and operating margin at 57.7%. Revenue growth of 17.6% 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 : MA

The primary concerns for MA are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.45 is elevated, increasing financial risk.

Bear Case : SYF

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

Key Dynamics to Monitor

MA profiles as a growth 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.

MA is growing revenue faster at 17.6% — sustainability is the question.

MA generates stronger free cash flow (4.8B), providing more financial flexibility.

Bottom Line

SYF scores higher overall (71/100 vs 70/100), backed by strong 36.4% margins. MA offers better value entry with a 34.7% 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.

Mastercard Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.

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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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