Bread Financial Holdings, Inc. (BFH) vs Klarna Group plc (KLAR)

Bread Financial Holdings, Inc. and Klarna Group plc are both Credit Services companies. Klarna Group plc is the larger, with a market value of $4.9B against $3.9B — 1.2× the size. Klarna Group plc has negative trailing earnings, so its P/E is not meaningful; Bread Financial Holdings, Inc. trades at 8.0×. Klarna Group plc grew revenue faster over the last twelve months: 34.2% against 0.72%. Bread Financial Holdings, Inc. has the higher net margin (11.9% vs −3.52%) and the higher return on invested capital (0.00% vs 0.00%). Across the 16 metrics below, Bread Financial Holdings, Inc. leads on 14 and Klarna Group plc on 2.

Valuation

Metric BFH KLAR Credit Services median
P/E 7.97 n/m 9.64
P/S 0.87 1.20 0.87
P/B 1.22 1.82 1.16
Price to free cash flow 1.90 n/m 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales (2.67) (0.10) 2.32
Earnings yield 12.55% (2.89%) 6.72%
Free cash flow yield 52.66% (78.64%) 12.33%

Profitability

Metric BFH KLAR Credit Services median
Gross margin 100.00% 58.18% 77.13%
Operating margin 76.34% (1.21%) 0.34%
Net margin 11.87% (3.52%) 9.25%
Free cash flow margin 45.67% (94.31%) 13.03%
Return on equity 17.27% (5.67%) 8.49%
Return on assets 2.55% (0.77%) 2.29%
Return on invested capital 0.00% 0.00% 4.09%

Growth

Metric BFH KLAR Credit Services median
Revenue growth (TTM) 0.72% 34.19% 4.62%
EPS growth (last fiscal year) 98.36% (8,000.00%) —
Revenue growth, 5-year CAGR 4.34% — 9.13%
Net income growth, 5-year CAGR 19.34% — 0.00%

Health

Metric BFH KLAR Credit Services median
Debt to equity 0.98 0.00 0.68
Current ratio 1.17 1.08 1.55
Net debt to EBITDA (4.25) 51.16 0.13

Dividend

Metric BFH KLAR Credit Services median
Dividend yield 2.42% — 3.34%
Payout ratio 0.08 — 0.00

Size

Metric BFH KLAR Credit Services median
Market cap 3.90b 4.86b 872.19m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack