Ally Financial (ALLY) Competitors

Fifth Third Bancorp (NASDAQ:FITB) and Ally Financial (NYSE:ALLY) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, media sentiment, profitability, risk and valuation.

Which has better earnings and valuation, FITB or ALLY?

Fifth Third Bancorp has higher revenue and earnings than Ally Financial. Fifth Third Bancorp 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
Fifth Third Bancorp	$13.28B	2.31	$2.31B	$3.22	14.37
Ally Financial	$8.18B	1.68	$668M	$1.54	28.96

Which has more risk and volatility, FITB or ALLY?

Fifth Third Bancorp has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Is FITB or ALLY a better dividend stock?

Fifth Third Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 2.7%. Fifth Third Bancorp pays out 46.0% of its earnings in the form of a dividend. Ally Financial pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fifth Third Bancorp has raised its dividend for 14 consecutive years. Fifth Third Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do analysts recommend FITB or ALLY?

Fifth Third Bancorp currently has a consensus price target of $48.13, indicating a potential upside of 4.00%. Ally Financial has a consensus price target of $44.40, indicating a potential downside of 0.45%. Given Fifth Third Bancorp's stronger consensus rating and higher probable upside, analysts plainly believe Fifth Third Bancorp is more favorable than Ally Financial.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth Third Bancorp	0 Sell rating(s)	5 Hold rating(s)	10 Buy rating(s)	2 Strong Buy rating(s)	2.82
Ally Financial	0 Sell rating(s)	8 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.53

Do institutionals & insiders hold more shares of FITB or ALLY?

83.8% of Fifth Third Bancorp shares are held by institutional investors. Comparatively, 88.8% of Ally Financial shares are held by institutional investors. 0.5% of Fifth Third Bancorp 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, large money managers and hedge funds believe a stock is poised for long-term growth.

Is FITB or ALLY more profitable?

Fifth Third Bancorp has a net margin of 17.97% compared to Ally Financial's net margin of 7.64%. Fifth Third Bancorp's return on equity of 13.31% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Fifth Third Bancorp	17.97%	13.31%	1.15%
Ally Financial	7.64%	9.48%	0.59%

Does the media favor FITB or ALLY?

In the previous week, Fifth Third Bancorp had 15 more articles in the media than Ally Financial. MarketBeat recorded 34 mentions for Fifth Third Bancorp and 19 mentions for Ally Financial. Ally Financial's average media sentiment score of 0.91 beat Fifth Third Bancorp's score of 0.66 indicating that Ally Financial is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Fifth Third Bancorp	19 Very Positive mention(s)	0 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Ally Financial	11 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Fifth Third Bancorp beats Ally Financial on 15 of the 20 factors compared between the two stocks.