Financial analysis: Bread Financial (BFH) and its rivals
Bread Financial (NYSE: BFH – Get a rating) is one of 226 listed companies in the “Business Services, Not Elsewhere Classified” sector, but how does it compare to its competitors? We’ll compare Bread Financial to similar companies based on earnings strength, institutional ownership, analyst recommendations, risk, profitability, dividends and valuation.
Risk and Volatility
Bread Financial has a beta of 1.97, meaning its stock price is 97% more volatile than the S&P 500. Comparatively, Bread Financial’s competitors have a beta of 1.04, meaning its stock price average is 4% more volatile than the S&P 500.
Insider and Institutional Ownership
99.4% of Bread Financial shares are held by institutional investors. In comparison, 59.8% of the shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 0.2% of Bread Financial shares are held by insiders. By comparison, 13.9% of the shares of all “Business Services, Not Elsewhere Classified” companies are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Bread Financial and its rivals, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|bread financial||0||0||0||0||N / A|
|Financial competitors of bread||1390||6845||12208||346||2.55|
As a group, companies in “Business Services, Not Elsewhere Classified” have an upside potential of 56.05%. Since Bread Financial’s rivals have higher upside potential, analysts clearly believe that Bread Financial has less favorable growth aspects than its rivals.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Bread Financial and its rivals.
|Gross revenue||Net revenue||Price/earnings ratio|
|bread financial||$3.27 billion||$801.00 million||3.52|
|Financial competitors of bread||$3.24 billion||$429.38 million||15.53|
Bread Financial has higher revenues and profits than its rivals. Bread Financial trades at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Bread Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Bread Financial pays 5.8% of its profits as a dividend. As a group, the “Business Services, Not Elsewhere Classified” companies pay a dividend yield of 1.3% and pay out 26.5% of their profits as a dividend. Bread Financial is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This table compares the net margins, return on equity and return on assets of Bread Financial and its competitors.
|Net margins||Return on equity||return on assets|
|Financial competitors of bread||-14.09%||-16.91%||-6.52%|
Bread Financial beats its rivals on 9 of the 12 factors compared.
Bread Financial Company Profile (Get a rating)
Bread Financial Holdings Inc. provides term payment and lending technology solutions to clients and consumer industries in North America. It provides credit card and other loan financing services, including risk management solutions, account creation and financing services for approximately 130 private label and co-branded credit card programs, as well as through the through Bread partnerships to approximately 500 small and medium enterprises. merchants; and Comenity branded general purpose cash back credit. The Company also manages and administers the loans it issues for private label, co-branded and general purpose credit card programs and Bread BNPL products (installment loans, split payment); and provides marketing, data and analytics services. Additionally, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promoting credit payment options earlier in the shopping experience. Additionally, the company, through Bread, a digital payment platform and robust suite of application programming interfaces, enables merchants and partners to integrate online point-of-sale financing and other digital payment products, including installment and split payment solutions. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings Inc. in March 2022. Bread Financial Holdings Inc. was founded in 1996 and is headquartered in Columbus, Ohio.
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