Capital One Financial Corporation (COF) vs Synchrony Financial (SYF)

Capital One Financial Corporation and Synchrony Financial are both Credit Services companies. Capital One Financial Corporation is the larger, with a market value of $122.0B against $23.3B — 5.2× the size. Synchrony Financial trades at the lower P/E: 7.4× against 12.4×. Capital One Financial Corporation grew revenue faster over the last twelve months: 37.3% against 0.13%. Synchrony Financial has the higher net margin (14.8% vs 13.0%) and the higher return on invested capital (16.8% vs 7.92%). Both pay a dividend; Synchrony Financial yields more (2.63% vs 1.83%). Across the 20 metrics below, Synchrony Financial leads on 16 and Capital One Financial Corporation on 4.

Valuation

Metric COF SYF Credit Services median
P/E 12.39 7.40 9.64
P/S 1.58 1.04 0.87
P/B 1.09 1.59 1.16
Price to free cash flow 4.18 2.49 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales 1.44 1.05 2.32
Earnings yield 8.07% 13.52% 6.72%
Free cash flow yield 23.91% 40.12% 12.33%

Profitability

Metric COF SYF Credit Services median
Gross margin 78.81% 83.05% 77.13%
Operating margin 0.00% 0.00% 0.34%
Net margin 12.98% 14.82% 9.25%
Free cash flow margin 37.74% 41.83% 13.03%
Return on equity 9.09% 22.23% 8.49%
Return on assets 1.53% 2.83% 2.29%
Return on invested capital 7.92% 16.83% 4.09%

Growth

Metric COF SYF Credit Services median
Revenue growth (TTM) 37.26% 0.13% 4.62%
EPS growth (last fiscal year) (65.23%) 8.54% —
Revenue growth, 5-year CAGR 16.96% 7.02% 9.13%
Net income growth, 5-year CAGR (1.69%) 20.90% 0.00%

Health

Metric COF SYF Credit Services median
Debt to equity 0.39 0.97 0.68
Current ratio 1.02 1.22 1.55
Net debt to EBITDA 0.00 0.00 0.13

Dividend

Metric COF SYF Credit Services median
Dividend yield 1.83% 2.63% 3.34%
Payout ratio 0.18 0.17 0.00

Size

Metric COF SYF Credit Services median
Market cap 121.97b 23.28b 872.19m

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