Credit Acceptance (CACC) Competitors

Credit Acceptance (NASDAQ:CACC) and Ally Financial (NYSE:ALLY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation, earnings and media sentiment.

Which has stronger earnings and valuation, CACC or ALLY?

Ally Financial has higher revenue and earnings than Credit Acceptance. Credit Acceptance is trading at a lower price-to-earnings ratio than Ally Financial, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credit Acceptance	$2.16B	2.63	$247.90M	$34.69	14.60
Ally Financial	$8.18B	1.53	$668M	$1.54	26.35

Do analysts recommend CACC or ALLY?

Credit Acceptance presently has a consensus price target of $440.00, suggesting a potential downside of 13.13%. Ally Financial has a consensus price target of $42.80, suggesting a potential upside of 5.46%. Given Ally Financial's stronger consensus rating and higher probable upside, analysts clearly believe Ally Financial is more favorable than Credit Acceptance.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credit Acceptance	1 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.50
Ally Financial	1 Sell rating(s)	7 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.47

Is CACC or ALLY more profitable?

Credit Acceptance has a net margin of 18.69% compared to Ally Financial's net margin of 7.64%. Credit Acceptance's return on equity of 27.06% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Credit Acceptance	18.69%	27.06%	5.08%
Ally Financial	7.64%	9.48%	0.59%

Which has more volatility and risk, CACC or ALLY?

Credit Acceptance has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Do insiders & institutionals have more ownership in CACC or ALLY?

81.7% of Credit Acceptance shares are held by institutional investors. Comparatively, 88.8% of Ally Financial shares are held by institutional investors. 6.6% of Credit Acceptance shares are held by company insiders. Comparatively, 0.7% of Ally Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Does the media refer more to CACC or ALLY?

In the previous week, Ally Financial had 11 more articles in the media than Credit Acceptance. MarketBeat recorded 18 mentions for Ally Financial and 7 mentions for Credit Acceptance. Credit Acceptance's average media sentiment score of 1.72 beat Ally Financial's score of 1.26 indicating that Credit Acceptance is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Credit Acceptance	6 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Ally Financial	13 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Ally Financial beats Credit Acceptance on 9 of the 16 factors compared between the two stocks.