Bread Financial (BFH) Competitors

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

Does the MarketBeat Community favor BFH or ALLY?

Ally Financial received 753 more outperform votes than Bread Financial when rated by MarketBeat users. Likewise, 64.30% of users gave Ally Financial an outperform vote while only 21.92% of users gave Bread Financial an outperform vote.

Company	Underperform	Outperform
Bread Financial	Outperform Votes 16 21.92%	Underperform Votes 57 78.08%
Ally Financial	Outperform Votes 769 64.30%	Underperform Votes 427 35.70%

Do insiders & institutionals have more ownership 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 company insiders. Comparatively, 0.7% of Ally Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Does the media refer more to BFH or ALLY?

In the previous week, Ally Financial had 19 more articles in the media than Bread Financial. MarketBeat recorded 23 mentions for Ally Financial and 4 mentions for Bread Financial. Bread Financial's average media sentiment score of 0.66 beat Ally Financial's score of 0.58 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	2 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ally Financial	7 Very Positive mention(s)	2 Positive mention(s)	11 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer BFH or ALLY?

Bread Financial currently has a consensus price target of $55.14, indicating a potential downside of 10.50%. Ally Financial has a consensus price target of $42.53, indicating a potential upside of 15.07%. Given Ally Financial's stronger consensus rating and higher probable upside, analysts clearly 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)	6 Buy rating(s)	0 Strong Buy rating(s)	2.24
Ally Financial	1 Sell rating(s)	8 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.44

Which has better valuation and 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	$5.17B	0.59	$718M	$6.28	9.81
Ally Financial	$8.21B	1.37	$1.02B	$2.50	14.79

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 1.4%. Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Bread Financial pays out 13.4% of its earnings in the form of a dividend. Ally Financial pays out 48.0% 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.

Which has more volatility and risk, BFH or ALLY?

Bread Financial has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Is BFH or ALLY more profitable?

Ally Financial has a net margin of 10.84% compared to Bread Financial's net margin of 6.37%. Bread Financial's return on equity of 13.33% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bread Financial	6.37%	13.33%	1.82%
Ally Financial	10.84%	8.39%	0.51%

Summary

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