Credit Acceptance (CACC) Competitors

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

Do analysts rate ALLY or CACC?

Ally Financial currently has a consensus target price of $42.80, suggesting a potential upside of 15.55%. Credit Acceptance has a consensus target price of $440.00, suggesting a potential downside of 1.68%. Given Ally Financial's stronger consensus rating and higher possible upside, equities research analysts clearly believe Ally Financial is more favorable than Credit Acceptance.

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

Does the media favor ALLY or CACC?

In the previous week, Credit Acceptance had 4 more articles in the media than Ally Financial. MarketBeat recorded 14 mentions for Credit Acceptance and 10 mentions for Ally Financial. Ally Financial's average media sentiment score of 1.17 beat Credit Acceptance's score of 0.76 indicating that Ally Financial is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ally Financial	7 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Credit Acceptance	8 Very Positive mention(s)	3 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ALLY or CACC 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 26.48% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ally Financial	7.64%	9.48%	0.59%
Credit Acceptance	18.69%	26.48%	5.05%

Which has more risk & volatility, ALLY or CACC?

Ally Financial has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Credit Acceptance has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Which has higher earnings & valuation, ALLY or CACC?

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
Ally Financial	$8.18B	1.39	$668M	$1.54	24.05
Credit Acceptance	$2.19B	2.37	$247.90M	$34.69	12.90

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

88.8% of Ally Financial shares are held by institutional investors. Comparatively, 81.7% of Credit Acceptance shares are held by institutional investors. 0.7% of Ally Financial shares are held by company insiders. Comparatively, 5.3% of Credit Acceptance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

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