Financial Comparison: Curo Group (CURO) & Ally Financial (ALLY)

Curo Group (NYSE:CURO) and Ally Financial (NYSE:ALLY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Curo Group and Ally Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Curo Group 0 0 5 0 3.00
Ally Financial 0 6 12 0 2.67

Curo Group presently has a consensus target price of $27.50, suggesting a potential upside of 98.84%. Ally Financial has a consensus target price of $32.82, suggesting a potential upside of 28.32%. Given Curo Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Curo Group is more favorable than Ally Financial.

Insider and Institutional Ownership

46.0% of Curo Group shares are held by institutional investors. Comparatively, 99.1% of Ally Financial shares are held by institutional investors. 48.4% of Curo Group shares are held by insiders. Comparatively, 0.2% 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.

Profitability

This table compares Curo Group and Ally Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Curo Group -0.13% 215.49% 8.96%
Ally Financial 16.87% 10.22% 0.80%

Valuation and Earnings

This table compares Curo Group and Ally Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Curo Group $963.63 million 0.66 $49.15 million $1.84 7.52
Ally Financial $9.87 billion 1.09 $929.00 million $2.39 10.70

Ally Financial has higher revenue and earnings than Curo Group. Curo Group is trading at a lower price-to-earnings ratio than Ally Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Ally Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Curo Group does not pay a dividend. Ally Financial pays out 25.1% of its earnings in the form of a dividend.

Summary

Ally Financial beats Curo Group on 9 of the 15 factors compared between the two stocks.

Curo Group Company Profile

CURO Group Holdings Corp., a diversified consumer finance company, provides consumer finance to a range of underbanked consumers in the United States, Canada, and the United Kingdom. It offers unsecured installment loans, secured installment loans, open-end loans, and single-pay loans, as well as ancillary financial products, including check cashing, proprietary reloadable prepaid debit cards, credit protection insurance, gold buying, retail installment sales, and money transfer services. The company operates under the Speedy Cash, Rapid Cash, Cash Money, Avío Credit, and Opt+ brands; and online as Wage Day Advance and Juo Loans, as well as offers installment loans online under the LendDirect brand. The company was formerly known as Speedy Group Holdings Corp. and changed its name to CURO Group Holdings Corp. in May 2016. CURO Group Holdings Corp. was founded in 1997 and is based in Wichita, Kansas.

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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