Bread Financial (BFH) vs. Its Competitors Head-To-Head Contrast

Bread Financial (NYSE:BFH) is one of 120 publicly-traded companies in the “Consumer Finance” industry, but how does it contrast to its competitors? We will compare Bread Financial to related businesses based on the strength of its institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Volatility & Risk

Bread Financial has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Bread Financial’s competitors have a beta of 1.26, suggesting that their average share price is 26% more volatile than the S&P 500.

Profitability

This table compares Bread Financial and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bread Financial	11.19%	17.24%	2.56%
Bread Financial Competitors	10.34%	-15.82%	1.67%

Dividends

Bread Financial pays an annual dividend of $0.92 per share and has a dividend yield of 0.9%. Bread Financial pays out 7.3% of its earnings in the form of a dividend. As a group, “Consumer Finance” companies pay a dividend yield of 6.1% and pay out 34.4% of their earnings in the form of a dividend.

Insider & Institutional Ownership

99.5% of Bread Financial shares are owned by institutional investors. Comparatively, 45.7% of shares of all “Consumer Finance” companies are owned by institutional investors. 1.3% of Bread Financial shares are owned by company insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Bread Financial and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bread Financial	1	8	8	0	2.41
Bread Financial Competitors	896	3369	5301	278	2.50

Bread Financial currently has a consensus target price of $111.71, indicating a potential upside of 13.30%. As a group, “Consumer Finance” companies have a potential upside of 21.16%. Given Bread Financial’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Bread Financial has less favorable growth aspects than its competitors.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Bread Financial	$4.70 billion	$518.00 million	7.78
Bread Financial Competitors	$3.64 billion	$385.17 million	4.56

Bread Financial has higher revenue and earnings than its competitors. Bread Financial is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Bread Financial beats its competitors on 9 of the 15 factors compared.

Bread Financial Company Profile

Bread Financial is a consumer financial services company that works with retailers and other businesses to offer payment and lending products. Its services include private-label and co-branded credit cards, installment payment options and other financing solutions designed for purchases with participating merchants. The company also offers deposit products through Bread Savings, including online savings accounts and certificates of deposit. Its products serve consumers primarily in the United States.