ALLY vs. EWBC, CFG, CBSH, WAL, NTRS, BPOP, WTFC, SSB, PB, and OZK
Should you be buying Ally Financial stock or one of its competitors? The main competitors of Ally Financial include East West Bancorp (EWBC), Citizens Financial Group (CFG), Commerce Bancshares (CBSH), Western Alliance Bancorporation (WAL), Northern Trust (NTRS), Popular (BPOP), Wintrust Financial (WTFC), SouthState (SSB), Prosperity Bancshares (PB), and Bank OZK (OZK). These companies are all part of the "state commercial banks" industry.
East West Bancorp (NASDAQ:EWBC) and Ally Financial (NYSE:ALLY) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends, media sentiment, valuation and community ranking.
East West Bancorp has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
East West Bancorp currently has a consensus target price of $84.08, indicating a potential upside of 8.75%. Ally Financial has a consensus target price of $38.47, indicating a potential downside of 3.22%. Given Ally Financial's stronger consensus rating and higher probable upside, analysts clearly believe East West Bancorp is more favorable than Ally Financial.
East West Bancorp pays an annual dividend of $2.20 per share and has a dividend yield of 2.8%. Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.0%. East West Bancorp pays out 27.7% of its earnings in the form of a dividend. Ally Financial pays out 49.0% 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. East West Bancorp has increased its dividend for 4 consecutive years.
89.5% of East West Bancorp shares are held by institutional investors. Comparatively, 88.8% of Ally Financial shares are held by institutional investors. 1.0% of East West Bancorp shares are held by company insiders. Comparatively, 0.7% of Ally Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
In the previous week, Ally Financial had 5 more articles in the media than East West Bancorp. MarketBeat recorded 13 mentions for Ally Financial and 8 mentions for East West Bancorp. Ally Financial's average media sentiment score of 1.05 beat East West Bancorp's score of 0.56 indicating that East West Bancorp is being referred to more favorably in the media.
East West Bancorp has higher earnings, but lower revenue than Ally Financial. East West Bancorp is trading at a lower price-to-earnings ratio than Ally Financial, indicating that it is currently the more affordable of the two stocks.
East West Bancorp has a net margin of 26.78% compared to East West Bancorp's net margin of 10.59%. Ally Financial's return on equity of 17.43% beat East West Bancorp's return on equity.
Ally Financial received 216 more outperform votes than East West Bancorp when rated by MarketBeat users. However, 64.56% of users gave East West Bancorp an outperform vote while only 64.43% of users gave Ally Financial an outperform vote.
Summary
East West Bancorp beats Ally Financial on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ALLY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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