Bread Financial (BFH) Competitors

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

Does the MarketBeat Community believe in BFH or ALLY?

Ally Financial received 757 more outperform votes than Bread Financial when rated by MarketBeat users. Likewise, 64.29% of users gave Ally Financial an outperform vote while only 22.08% of users gave Bread Financial an outperform vote.

Company	Underperform	Outperform
Bread Financial	Outperform Votes 17 22.08%	Underperform Votes 60 77.92%
Ally Financial	Outperform Votes 774 64.29%	Underperform Votes 430 35.71%

Which has preferable valuation & earnings, BFH or ALLY?

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
Bread Financial	$4.80B	0.58	$277M	$5.55	10.25
Ally Financial	$8.18B	1.40	$668M	$2.60	14.43

Which has more risk and volatility, BFH or ALLY?

Bread Financial has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Do analysts prefer BFH or ALLY?

Bread Financial presently has a consensus target price of $59.69, indicating a potential upside of 4.97%. Ally Financial has a consensus target price of $43.76, indicating a potential upside of 16.67%. Given Ally Financial's stronger consensus rating and higher possible upside, analysts plainly believe Ally Financial is more favorable than Bread Financial.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bread Financial	2 Sell rating(s)	9 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.19
Ally Financial	1 Sell rating(s)	9 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.42

Is BFH or ALLY more profitable?

Ally Financial has a net margin of 11.29% compared to Bread Financial's net margin of 5.75%. Bread Financial's return on equity of 12.41% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bread Financial	5.75%	12.41%	1.72%
Ally Financial	11.29%	9.31%	0.57%

Is BFH or ALLY a better dividend stock?

Bread Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Bread Financial pays out 15.1% of its earnings in the form of a dividend. Ally Financial pays out 46.2% 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.

Does the media prefer BFH or ALLY?

In the previous week, Ally Financial had 8 more articles in the media than Bread Financial. MarketBeat recorded 20 mentions for Ally Financial and 12 mentions for Bread Financial. Bread Financial's average media sentiment score of 0.56 beat Ally Financial's score of 0.48 indicating that Bread Financial is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Bread Financial	4 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ally Financial	11 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do insiders & institutionals believe in BFH or ALLY?

99.5% of Bread Financial shares are owned by institutional investors. Comparatively, 88.8% of Ally Financial shares are owned by institutional investors. 0.6% of Bread Financial shares are owned by insiders. Comparatively, 0.7% of Ally Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Ally Financial beats Bread Financial on 13 of the 20 factors compared between the two stocks.