Moodys Corporation (MCO)vsSynchrony Financial (SYF)
MCO
Moodys Corporation
$428.05
-0.10%
FINANCIAL SERVICES · Cap: $76.27B
SYF
Synchrony Financial
$67.63
+0.54%
FINANCIAL SERVICES · Cap: $24.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Synchrony Financial generates 26% more annual revenue ($9.76B vs $7.72B). SYF leads profitability with a 36.4% profit margin vs 31.9%. MCO appears more attractively valued with a PEG of 1.93. SYF earns a higher WallStSmart Score of 71/100 (B).
MCO
Strong Buy71
out of 100
Grade: B
SYF
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+33.1%
Fair Value
$639.76
Current Price
$428.05
$211.71 discount
Margin of Safety
+59.2%
Fair Value
$178.92
Current Price
$67.63
$111.29 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 62 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 42.1%
Earnings expanding 57.6% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 48.5%
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Generating 2.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 18.7x book value
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : MCO
The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 42.1%. Revenue growth of 13.0% 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 48.5%.
Bear Case : MCO
The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : SYF
The primary concerns for SYF are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
MCO profiles as a mature stock while SYF is a value play — different risk/reward profiles.
MCO carries more volatility with a beta of 1.44 — expect wider price swings.
MCO is growing revenue faster at 13.0% — sustainability is the question.
SYF generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
MCO scores higher overall (71/100 vs 71/100), backed by strong 31.9% margins and 13.0% revenue growth. SYF offers better value entry with a 59.2% 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.
Moodys Corporation
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.
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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