Head-To-Head Comparison: Ally Financial (ALLY) & Its Rivals

Ally Financial (NYSE: ALLY) is one of 29 publicly-traded companies in the “Nondepository credit institutions” industry, but how does it compare to its rivals? We will compare Ally Financial to related businesses based on the strength of its profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Volatility and Risk

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Ally Financial has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Ally Financial’s rivals have a beta of 1.49, meaning that their average share price is 49% more volatile than the S&P 500.

Profitability

This table compares Ally Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ally Financial 13.73% 8.10% 0.66%
Ally Financial Competitors 15.24% 65.06% 1.59%

Institutional & Insider Ownership

52.8% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 0.2% of Ally Financial shares are held by company insiders. Comparatively, 16.1% of shares of all “Nondepository credit institutions” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Ally Financial and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ally Financial $9.87 billion $929.00 million 11.54
Ally Financial Competitors $6.70 billion $705.01 million 11.65

Ally Financial has higher revenue and earnings than its rivals. Ally Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Ally Financial pays an annual dividend of $0.52 per share and has a dividend yield of 1.9%. Ally Financial pays out 21.8% of its earnings in the form of a dividend. As a group, “Nondepository credit institutions” companies pay a dividend yield of 2.7% and pay out 35.6% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Ally Financial and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ally Financial 0 4 13 0 2.76
Ally Financial Competitors 157 721 969 41 2.47

Ally Financial currently has a consensus target price of $32.94, suggesting a potential upside of 19.38%. As a group, “Nondepository credit institutions” companies have a potential downside of 7.00%. Given Ally Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Ally Financial is more favorable than its rivals.

Summary

Ally Financial rivals beat Ally Financial on 9 of the 15 factors compared.

Ally Financial Company Profile

Ally Financial Inc. provides various financial products and services for consumers, businesses, automotive dealers, and corporate clients in the United States and Canada. The company operates Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. The Automotive Finance Operations segment provides automotive financing services to consumers and automotive dealers. Its automotive finance services include providing retail installment sales contracts, loans and leases, term loans to dealers, financing dealer floorplans, other lines of credit to dealers, warehouse lines to companies, and fleet financing. This segment also offers financing services to companies and municipalities for the purchase or lease of vehicles and equipment, and vehicle remarketing services. The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers. The Mortgage Finance Operations segment manages held-for-investment consumer mortgage finance loan portfolio that includes bulk purchases of high-quality jumbo and LMI mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings. The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to middle market companies. Its primary focus is on businesses owned by private equity sponsors with loans used for leveraged buyouts, mergers and acquisitions, debt refinancing, restructurings, and working capital. The company, through its subsidiary, Ally Bank, also offers commercial banking products and services. In addition, it provides digital wealth management and online brokerage platform services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is headquartered in Detroit, Michigan.

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