Ally Financial (ALLY) Competitors

Rocket Companies (NYSE:RKT) and Ally Financial (NYSE:ALLY) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, community ranking, risk, profitability, media sentiment, analyst recommendations and institutional ownership.

Does the MarketBeat Community prefer RKT or ALLY?

Ally Financial received 386 more outperform votes than Rocket Companies when rated by MarketBeat users. Likewise, 64.38% of users gave Ally Financial an outperform vote while only 62.58% of users gave Rocket Companies an outperform vote.

Company	Underperform	Outperform
Rocket Companies	Outperform Votes 393 62.58%	Underperform Votes 235 37.42%
Ally Financial	Outperform Votes 779 64.38%	Underperform Votes 431 35.62%

Is RKT or ALLY more profitable?

Ally Financial has a net margin of 11.29% compared to Rocket Companies' net margin of -0.38%. Ally Financial's return on equity of 9.31% beat Rocket Companies' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Rocket Companies	-0.38%	2.86%	1.08%
Ally Financial	11.29%	9.31%	0.57%

Do analysts rate RKT or ALLY?

Rocket Companies currently has a consensus target price of $14.25, suggesting a potential upside of 20.20%. Ally Financial has a consensus target price of $42.41, suggesting a potential upside of 32.72%. Given Ally Financial's stronger consensus rating and higher probable upside, analysts plainly believe Ally Financial is more favorable than Rocket Companies.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocket Companies	2 Sell rating(s)	9 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	1.92
Ally Financial	2 Sell rating(s)	7 Hold rating(s)	10 Buy rating(s)	0 Strong Buy rating(s)	2.42

Does the media prefer RKT or ALLY?

In the previous week, Ally Financial had 15 more articles in the media than Rocket Companies. MarketBeat recorded 40 mentions for Ally Financial and 25 mentions for Rocket Companies. Rocket Companies' average media sentiment score of 0.81 beat Ally Financial's score of 0.71 indicating that Rocket Companies is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Rocket Companies	10 Very Positive mention(s)	4 Positive mention(s)	9 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ally Financial	17 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	10 Negative mention(s)	0 Very Negative mention(s)	Positive

Is RKT or ALLY a better dividend stock?

Rocket Companies pays an annual dividend of $1.2820 per share and has a dividend yield of 10.8%. Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.8%. Rocket Companies pays out 801.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ally Financial pays out 46.2% of its earnings in the form of a dividend.

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

4.6% of Rocket Companies shares are owned by institutional investors. Comparatively, 88.8% of Ally Financial shares are owned by institutional investors. 93.1% of Rocket Companies shares are owned by company insiders. Comparatively, 0.6% of Ally Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Which has higher valuation & earnings, RKT or ALLY?

Ally Financial has higher revenue and earnings than Rocket Companies. Ally Financial is trading at a lower price-to-earnings ratio than Rocket Companies, 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
Rocket Companies	$4.93B	4.80	-$15.51M	$0.16	74.09
Ally Financial	$8.90B	1.10	$668M	$2.60	12.29

Which has more risk & volatility, RKT or ALLY?

Rocket Companies has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Summary

Ally Financial beats Rocket Companies on 14 of the 20 factors compared between the two stocks.