Core Viewpoint - The article compares Synchrony (SYF) and Blackstone Inc. (BX) to determine which stock is more attractive to value investors, highlighting SYF as the superior option based on valuation metrics [1][6]. Group 1: Zacks Rank and Earnings Outlook - Both Synchrony and Blackstone Inc. currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - The Zacks Rank is a strategy that targets companies with favorable earnings estimate revision trends, which is essential for investors [2]. Group 2: Valuation Metrics - SYF has a forward P/E ratio of 9.15, significantly lower than BX's forward P/E of 36.79, suggesting SYF is undervalued relative to BX [5]. - SYF's PEG ratio is 0.77, while BX's PEG ratio is 1.49, indicating that SYF has a better valuation considering its expected earnings growth [5]. - SYF's P/B ratio is 1.8, compared to BX's P/B of 6.85, further supporting the argument that SYF is a more attractive value investment [6]. Group 3: Value Grades - Based on the valuation figures, SYF has earned a Value grade of A, while BX has received a Value grade of D, reinforcing the conclusion that SYF is the superior value option at this time [6].
SYF vs. BX: Which Stock Should Value Investors Buy Now?