Bread Financial (BFH) Competitors

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

Which has more volatility & risk, BFH or ALLY?

Bread Financial has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Do analysts prefer BFH or ALLY?

Bread Financial presently has a consensus price target of $64.42, indicating a potential upside of 8.14%. Ally Financial has a consensus price target of $42.80, indicating a potential upside of 11.18%. 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	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

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	$5.91	10.08
Ally Financial	$8.18B	1.45	$668M	$1.54	25.00

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

99.5% of Bread Financial shares are held by institutional investors. Comparatively, 88.8% of Ally Financial shares are held by institutional investors. 0.6% of Bread Financial shares are held by insiders. Comparatively, 0.6% of Ally Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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 14.2% of its earnings in the form of a dividend. Ally Financial pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Does the media refer more to BFH or ALLY?

In the previous week, Ally Financial had 7 more articles in the media than Bread Financial. MarketBeat recorded 16 mentions for Ally Financial and 9 mentions for Bread Financial. Ally Financial's average media sentiment score of 1.15 beat Bread Financial's score of 0.98 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	3 Very Positive mention(s)	4 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ally Financial	10 Very Positive mention(s)	4 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is BFH or ALLY more profitable?

Ally Financial has a net margin of 7.64% compared to Bread Financial's net margin of 6.05%. Bread Financial's return on equity of 13.10% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bread Financial	6.05%	13.10%	1.83%
Ally Financial	7.64%	9.48%	0.59%

Summary

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