ALLY vs. EWBC, CFG, CBSH, NTRS, WAL, BPOP, WTFC, SSB, PB, and CADE
Should you be buying Ally Financial stock or one of its competitors? The main competitors of Ally Financial include East West Bancorp (EWBC), Citizens Financial Group (CFG), Commerce Bancshares (CBSH), Northern Trust (NTRS), Western Alliance Bancorporation (WAL), Popular (BPOP), Wintrust Financial (WTFC), SouthState (SSB), Prosperity Bancshares (PB), and Cadence Bank (CADE). These companies are all part of the "state commercial banks" industry.
East West Bancorp (NASDAQ:EWBC) and Ally Financial (NYSE:ALLY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, community ranking, media sentiment, earnings, dividends and risk.
Ally Financial received 216 more outperform votes than East West Bancorp when rated by MarketBeat users. However, 64.56% of users gave East West Bancorp an outperform vote while only 64.43% of users gave Ally Financial an outperform vote.
East West Bancorp has higher earnings, but lower revenue than Ally Financial. East West 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.
89.5% of East West Bancorp shares are held by institutional investors. Comparatively, 88.8% of Ally Financial shares are held by institutional investors. 1.0% of East West 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
East West Bancorp has a net margin of 26.78% compared to East West Bancorp's net margin of 10.59%. Ally Financial's return on equity of 17.66% beat East West Bancorp's return on equity.
East West Bancorp has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.
In the previous week, Ally Financial had 3 more articles in the media than East West Bancorp. MarketBeat recorded 31 mentions for Ally Financial and 28 mentions for East West Bancorp. Ally Financial's average media sentiment score of 0.69 beat East West Bancorp's score of 0.61 indicating that East West Bancorp is being referred to more favorably in the media.
East West Bancorp currently has a consensus price target of $84.08, suggesting a potential upside of 10.11%. Ally Financial has a consensus price target of $38.47, suggesting a potential downside of 1.74%. Given Ally Financial's stronger consensus rating and higher possible upside, equities research analysts clearly believe East West Bancorp is more favorable than Ally Financial.
East West Bancorp pays an annual dividend of $2.20 per share and has a dividend yield of 2.9%. Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. East West Bancorp pays out 27.7% 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. East West Bancorp has increased its dividend for 4 consecutive years.
Summary
East West Bancorp beats Ally Financial on 15 of the 21 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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