ALLY vs. BK, DB, FITB, MTB, FCNCA, STT, NTRS, CFG, EWBC, and CBSH
Should you be buying Ally Financial stock or one of its competitors? The main competitors of Ally Financial include Bank of New York Mellon (BK), Deutsche Bank Aktiengesellschaft (DB), Fifth Third Bancorp (FITB), M&T Bank (MTB), First Citizens BancShares (FCNCA), State Street (STT), Northern Trust (NTRS), Citizens Financial Group (CFG), East West Bancorp (EWBC), and Commerce Bancshares (CBSH). These companies are all part of the "state commercial banks" industry.
Bank of New York Mellon (NYSE:BK) and Ally Financial (NYSE:ALLY) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability, media sentiment, dividends and community ranking.
Bank of New York Mellon has higher revenue and earnings than Ally Financial. Bank of New York Mellon is trading at a lower price-to-earnings ratio than Ally Financial, indicating that it is currently the more affordable of the two stocks.
85.3% of Bank of New York Mellon shares are held by institutional investors. Comparatively, 88.8% of Ally Financial shares are held by institutional investors. 0.1% of Bank of New York Mellon shares are held by insiders. Comparatively, 0.7% of Ally Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
In the previous week, Bank of New York Mellon had 7 more articles in the media than Ally Financial. MarketBeat recorded 13 mentions for Bank of New York Mellon and 6 mentions for Ally Financial. Bank of New York Mellon's average media sentiment score of 1.28 beat Ally Financial's score of 0.77 indicating that Ally Financial is being referred to more favorably in the news media.
Bank of New York Mellon presently has a consensus target price of $60.17, indicating a potential downside of 0.24%. Ally Financial has a consensus target price of $39.17, indicating a potential upside of 1.36%. Given Bank of New York Mellon's higher possible upside, analysts clearly believe Ally Financial is more favorable than Bank of New York Mellon.
Bank of New York Mellon pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. Bank of New York Mellon pays out 41.0% of its earnings in the form of a dividend. Ally Financial pays out 49.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Bank of New York Mellon has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.
Bank of New York Mellon received 132 more outperform votes than Ally Financial when rated by MarketBeat users. Likewise, 67.15% of users gave Bank of New York Mellon an outperform vote while only 64.46% of users gave Ally Financial an outperform vote.
Ally Financial has a net margin of 10.59% compared to Ally Financial's net margin of 9.48%. Ally Financial's return on equity of 11.80% beat Bank of New York Mellon's return on equity.
Summary
Bank of New York Mellon beats Ally Financial on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ALLY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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