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Credit Acceptance Corporation (CACC) vs Synchrony Financial (SYF)

Credit Acceptance Corporation and Synchrony Financial are both Credit Services companies. Synchrony Financial is the larger, with a market value of $24.1B against $5.7B — 4.2× the size. Synchrony Financial trades at the lower P/E: 7.5× against 11.7×. Credit Acceptance Corporation grew revenue faster over the last twelve months: 2.58% against 0.13%. Credit Acceptance Corporation has the higher net margin (21.5% vs 14.8%) and the lower return on invested capital (10.0% vs 16.8%). Across the 20 metrics below, Synchrony Financial leads on 11 and Credit Acceptance Corporation on 9.

Valuation

Metric CACC SYF Credit Services median
P/E 11.75 7.47 9.39
P/S 2.45 1.05 0.86
P/B 3.60 1.61 1.16
Price to free cash flow 4.68 2.52 2.78
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.51% 13.38% 6.55%
Free cash flow yield 21.37% 39.71% 12.26%

Profitability

Metric CACC SYF Credit Services median
Gross margin 100.00% 83.05% 77.13%
Operating margin 50.01% 0.00% 0.34%
Net margin 21.54% 14.82% 9.25%
Free cash flow margin 52.41% 41.83% 12.91%
Return on equity 31.93% 22.23% 8.49%
Return on assets 5.79% 2.83% 2.16%
Return on invested capital 10.02% 16.83% 4.09%

Growth

Metric CACC SYF Credit Services median
Revenue growth (TTM) 2.58% 0.13% 4.62%
EPS growth (last fiscal year) 83.60% 8.54% 21.94%
Revenue growth, 5-year CAGR 6.78% 7.02% 9.13%
Net income growth, 5-year CAGR 0.14% 20.90% 0.00%

Health

Metric CACC SYF Credit Services median
Debt to equity 3.96 0.97 0.68
Current ratio 14.89 1.22 1.55
Net debt to EBITDA 5.10 0.00 0.13

Dividend

Metric CACC SYF Credit Services median
Dividend yield — 1.68% 1.64%
Payout ratio — 0.13 0.22

Size

Metric CACC SYF Credit Services median
Market cap 5.71b 24.09b 751.08m

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