Bread Financial (BFH) Competitors

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

Do analysts rate ALLY or BFH?

Ally Financial currently has a consensus target price of $42.80, indicating a potential upside of 10.11%. Bread Financial has a consensus target price of $64.42, indicating a potential upside of 4.84%. Given Ally Financial's stronger consensus rating and higher possible upside, research analysts plainly believe Ally Financial is more favorable than Bread Financial.

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
Bread Financial	3 Sell rating(s)	6 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.08

Which has stronger valuation & earnings, ALLY or BFH?

Ally Financial has higher revenue and earnings than Bread Financial. Bread Financial 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	1.46	$668M	$1.54	25.24
Bread Financial	$4.80B	0.60	$277M	$5.91	10.40

Is ALLY or BFH more profitable?

Ally Financial has a net margin of 7.64% compared to Bread Financial's net margin of 6.05%. Bread Financial's return on equity of 13.10% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ally Financial	7.64%	9.48%	0.59%
Bread Financial	6.05%	13.10%	1.83%

Which has more risk and volatility, ALLY or BFH?

Ally Financial has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Bread Financial has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Is ALLY or BFH a better dividend stock?

Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. Bread Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. 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. Bread Financial pays out 14.2% of its earnings in the form of a dividend.

Do institutionals and insiders believe in ALLY or BFH?

88.8% of Ally Financial shares are owned by institutional investors. Comparatively, 99.5% of Bread Financial shares are owned by institutional investors. 0.7% of Ally Financial shares are owned by company insiders. Comparatively, 0.9% of Bread Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Does the media refer more to ALLY or BFH?

In the previous week, Ally Financial had 6 more articles in the media than Bread Financial. MarketBeat recorded 20 mentions for Ally Financial and 14 mentions for Bread Financial. Ally Financial's average media sentiment score of 1.21 beat Bread Financial's score of 0.46 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	11 Very Positive mention(s)	4 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Bread Financial	5 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

Ally Financial beats Bread Financial on 11 of the 18 factors compared between the two stocks.