Ally Financial Inc. (ALLY) vs Capital One Financial Corporation (COF)

Ally Financial Inc. and Capital One Financial Corporation are both Credit Services companies. Capital One Financial Corporation is the larger, with a market value of $122.0B against $11.8B — 10.4× the size. Ally Financial Inc. trades at the lower P/E: 9.0× against 12.4×. Capital One Financial Corporation grew revenue faster over the last twelve months: 37.3% against 1.83%. Capital One Financial Corporation has the higher net margin (13.0% vs 8.38%) and the higher return on invested capital (7.92% vs 4.64%). Both pay a dividend; Ally Financial Inc. yields more (3.34% vs 1.83%). Across the 20 metrics below, Ally Financial Inc. leads on 10 and Capital One Financial Corporation on 10.

Valuation

Metric ALLY COF Credit Services median
P/E 9.04 12.39 9.64
P/S 0.75 1.58 0.87
P/B 0.89 1.09 1.16
Price to free cash flow 2.62 4.18 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales 1.33 1.44 2.32
Earnings yield 11.06% 8.07% 6.72%
Free cash flow yield 38.17% 23.91% 12.33%

Profitability

Metric ALLY COF Credit Services median
Gross margin 61.12% 78.81% 77.13%
Operating margin 0.00% 0.00% 0.34%
Net margin 8.38% 12.98% 9.25%
Free cash flow margin 28.78% 37.74% 13.03%
Return on equity 10.33% 9.09% 8.49%
Return on assets 0.68% 1.53% 2.29%
Return on invested capital 4.64% 7.92% 4.09%

Growth

Metric ALLY COF Credit Services median
Revenue growth (TTM) 1.83% 37.26% 4.62%
EPS growth (last fiscal year) 31.67% (65.23%) —
Revenue growth, 5-year CAGR 7.20% 16.96% 9.13%
Net income growth, 5-year CAGR (7.32%) (1.69%) 0.00%

Health

Metric ALLY COF Credit Services median
Debt to equity 1.10 0.39 0.68
Current ratio 0.92 1.02 1.55
Net debt to EBITDA 0.00 0.00 0.13

Dividend

Metric ALLY COF Credit Services median
Dividend yield 3.34% 1.83% 3.34%
Payout ratio 0.32 0.18 0.00

Size

Metric ALLY COF Credit Services median
Market cap 11.78b 121.97b 872.19m

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