Burford Capital (BUR) Competitors

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

Is ALLY or BUR more profitable?

Burford Capital has a net margin of 34.81% compared to Ally Financial's net margin of 11.29%. Ally Financial's return on equity of 9.31% beat Burford Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ally Financial	11.29%	9.31%	0.57%
Burford Capital	34.81%	8.07%	4.28%

Does the MarketBeat Community prefer ALLY or BUR?

Ally Financial received 761 more outperform votes than Burford Capital when rated by MarketBeat users. Likewise, 64.29% of users gave Ally Financial an outperform vote while only 59.09% of users gave Burford Capital an outperform vote.

Company	Underperform	Outperform
Ally Financial	Outperform Votes 774 64.29%	Underperform Votes 430 35.71%
Burford Capital	Outperform Votes 13 59.09%	Underperform Votes 9 40.91%

Does the media prefer ALLY or BUR?

In the previous week, Ally Financial had 22 more articles in the media than Burford Capital. MarketBeat recorded 23 mentions for Ally Financial and 1 mentions for Burford Capital. Burford Capital's average media sentiment score of 1.59 beat Ally Financial's score of 0.61 indicating that Burford Capital is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ally Financial	13 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Burford Capital	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Do analysts prefer ALLY or BUR?

Ally Financial presently has a consensus target price of $43.76, suggesting a potential upside of 16.67%. Burford Capital has a consensus target price of $19.50, suggesting a potential upside of 27.08%. Given Burford Capital's stronger consensus rating and higher possible upside, analysts plainly believe Burford Capital is more favorable than Ally Financial.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ally Financial	1 Sell rating(s)	9 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.42
Burford Capital	0 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	3.00

Which has preferable earnings & valuation, ALLY or BUR?

Ally Financial has higher revenue and earnings than Burford Capital. Burford Capital 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	$8.18B	1.41	$668M	$2.60	14.43
Burford Capital	$1.09B	3.09	$610.52M	$1.16	13.23

Which has more volatility & risk, ALLY or BUR?

Ally Financial has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Do insiders and institutionals hold more shares of ALLY or BUR?

88.8% of Ally Financial shares are owned by institutional investors. 0.7% of Ally Financial shares are owned by insiders. Comparatively, 0.2% of Burford Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Is ALLY or BUR a better dividend stock?

Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Burford Capital pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Ally Financial pays out 46.2% of its earnings in the form of a dividend. Burford Capital pays out 10.3% 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.

Summary

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