• Synchrony Financial (NYSE:SYF) has a ROIC of 7.12% and a WACC of 15.73%, indicating its returns are less than its cost of capital.
• Among its peers, M&T Bank Corporation (MTB) showcases exceptional capital efficiency with a ROIC of 132.61% and a WACC of 11.97%.
• Ally Financial (ALLY) and The Bank of New York Mellon Corporation (BK) also demonstrate better capital utilization compared to Synchrony Financial.

Synchrony Financial (NYSE:SYF) is a consumer financial services company that provides a range of credit products through programs with retailers, merchants, manufacturers, and healthcare providers. It operates in the financial services sector, competing with other major players like Citizens Financial Group, Discover Financial Services, Ally Financial, The Bank of New York Mellon Corporation, and M&T Bank Corporation.

In evaluating Synchrony Financial's performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. SYF's ROIC is 7.12%, while its WACC is 15.73%, resulting in a ROIC to WACC ratio of 0.45. This indicates that SYF's returns are less than its cost of capital, suggesting room for improvement in capital efficiency.

Comparatively, Citizens Financial Group (CFG) has a ROIC of 3.73% and a WACC of 17.31%, leading to a ROIC to WACC ratio of 0.22. This is lower than SYF's ratio, indicating CFG is less efficient in using its capital. Discover Financial Services (DFS) shows a ROIC of 4.24% and a WACC of 13.89%, with a ratio of 0.31, also below SYF's performance.

Ally Financial (ALLY) presents a ROIC of 14.33% and a WACC of 23.44%, resulting in a ROIC to WACC ratio of 0.61. This is higher than SYF's, indicating better capital utilization. The Bank of New York Mellon Corporation (BK) has a ROIC of 17.43% and a WACC of 20.65%, with a ratio of 0.84, showing strong capital efficiency.

M&T Bank Corporation (MTB) stands out with a ROIC of 132.61% and a WACC of 11.97%, achieving a remarkable ROIC to WACC ratio of 11.08. This highlights MTB's exceptional ability to generate returns far exceeding its cost of capital, making it the most efficient among the peers analyzed.