Bread Financial (BFH) Competitors

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

Do insiders and institutionals hold more shares of 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, 0.6% of Ally Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Which has more volatility and risk, BFH or ALLY?

Bread Financial has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Do analysts recommend BFH or ALLY?

Bread Financial currently has a consensus target price of $63.92, suggesting a potential upside of 6.42%. Ally Financial has a consensus target price of $42.67, suggesting a potential upside of 9.23%. Given Ally Financial's stronger consensus rating and higher probable 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	3 Sell rating(s)	6 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.08
Ally Financial	1 Sell rating(s)	7 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.47

Does the media favor BFH or ALLY?

In the previous week, Ally Financial had 11 more articles in the media than Bread Financial. MarketBeat recorded 16 mentions for Ally Financial and 5 mentions for Bread Financial. Ally Financial's average media sentiment score of 0.73 beat Bread Financial's score of 0.50 indicating that Ally Financial is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Bread Financial	0 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ally Financial	4 Very Positive mention(s)	3 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is BFH or ALLY more profitable?

Ally Financial has a net margin of 6.96% compared to Bread Financial's net margin of 5.89%. Bread Financial's return on equity of 12.60% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bread Financial	5.89%	12.60%	1.75%
Ally Financial	6.96%	9.53%	0.59%

Which has higher 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	$4.80B	0.58	$277M	$5.63	10.67
Ally Financial	$8.18B	1.47	$668M	$1.36	28.72

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 3.1%. Bread Financial pays out 14.9% of its earnings in the form of a dividend. Ally Financial pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

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