ALLY vs. EWBC, CFG, CBSH, WAL, BPOP, NTRS, WTFC, SSB, PB, and OZK
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), Western Alliance Bancorporation (WAL), Popular (BPOP), Northern Trust (NTRS), Wintrust Financial (WTFC), SouthState (SSB), Prosperity Bancshares (PB), and Bank OZK (OZK). These companies are all part of the "state commercial banks" industry.
Ally Financial (NYSE:ALLY) and East West Bancorp (NASDAQ:EWBC) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their community ranking, dividends, earnings, media sentiment, analyst recommendations, institutional ownership, profitability, valuation and risk.
88.8% of Ally Financial shares are owned by institutional investors. Comparatively, 89.5% of East West Bancorp shares are owned by institutional investors. 0.7% of Ally Financial shares are owned by insiders. Comparatively, 1.0% of East West Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
In the previous week, Ally Financial had 3 more articles in the media than East West Bancorp. MarketBeat recorded 20 mentions for Ally Financial and 17 mentions for East West Bancorp. East West Bancorp's average media sentiment score of 1.19 beat Ally Financial's score of 0.26 indicating that East West Bancorp is being referred to more favorably in the news media.
Ally Financial currently has a consensus target price of $38.47, suggesting a potential downside of 4.11%. East West Bancorp has a consensus target price of $84.08, suggesting a potential upside of 8.61%. Given East West Bancorp's stronger consensus rating and higher possible upside, analysts plainly believe East West Bancorp is more favorable than Ally Financial.
East West Bancorp has a net margin of 26.78% compared to Ally Financial's net margin of 10.59%. East West Bancorp's return on equity of 17.43% beat Ally Financial's return on equity.
Ally Financial has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, East West Bancorp has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.
East West Bancorp has lower revenue, but higher earnings 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.
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.
Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.0%. East West Bancorp pays an annual dividend of $2.20 per share and has a dividend yield of 2.8%. Ally Financial pays out 49.0% of its earnings in the form of a dividend. East West Bancorp pays out 27.7% 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.
Summary
East West Bancorp beats Ally Financial on 14 of the 20 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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