Bread Financial (BFH) Competitors

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

Is ALLY or BFH a better dividend stock?

Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. Bread Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Ally Financial pays out 48.0% of its earnings in the form of a dividend. Bread Financial pays out 13.4% 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 MarketBeat Community favor ALLY or BFH?

Ally Financial received 749 more outperform votes than Bread Financial when rated by MarketBeat users. Likewise, 64.23% of users gave Ally Financial an outperform vote while only 19.72% of users gave Bread Financial an outperform vote.

Company	Underperform	Outperform
Ally Financial	Outperform Votes 763 64.23%	Underperform Votes 425 35.77%
Bread Financial	Outperform Votes 14 19.72%	Underperform Votes 57 80.28%

Does the media favor ALLY or BFH?

In the previous week, Ally Financial had 4 more articles in the media than Bread Financial. MarketBeat recorded 19 mentions for Ally Financial and 15 mentions for Bread Financial. Bread Financial's average media sentiment score of 0.83 beat Ally Financial's score of 0.74 indicating that Bread Financial is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ally Financial	12 Very Positive mention(s)	1 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Bread Financial	6 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable earnings and valuation, ALLY or BFH?

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
Ally Financial	$8.21B	1.32	$1.02B	$2.50	14.21
Bread Financial	$5.17B	0.55	$718M	$6.28	9.11

Do analysts recommend ALLY or BFH?

Ally Financial currently has a consensus target price of $40.69, indicating a potential upside of 14.52%. Bread Financial has a consensus target price of $50.00, indicating a potential downside of 12.57%. Given Ally Financial's stronger consensus rating and higher possible upside, research analysts clearly believe Ally Financial is more favorable than Bread Financial.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ally Financial	1 Sell rating(s)	7 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.47
Bread Financial	3 Sell rating(s)	9 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.12

Do institutionals and insiders believe in ALLY or BFH?

88.8% of Ally Financial shares are held by institutional investors. Comparatively, 99.5% of Bread Financial shares are held by institutional investors. 0.7% of Ally Financial shares are held by insiders. Comparatively, 0.6% of Bread Financial shares are held by 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.

Is ALLY or BFH 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
Ally Financial	10.84%	8.39%	0.51%
Bread Financial	6.37%	13.33%	1.82%

Which has more risk and volatility, ALLY or BFH?

Ally Financial has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Bread Financial has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500.

Summary

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