Bread Financial Holdings, Inc. (BFH) vs OneMain Holdings, Inc. (OMF)

Bread Financial Holdings, Inc. and OneMain Holdings, Inc. are both Credit Services companies. OneMain Holdings, Inc. is the larger, with a market value of $6.5B against $3.9B — 1.7× the size. Bread Financial Holdings, Inc. trades at the lower P/E: 8.0× against 8.6×. OneMain Holdings, Inc. grew revenue faster over the last twelve months: 7.04% against 0.72%. OneMain Holdings, Inc. has the higher net margin (12.3% vs 11.9%) and the higher return on invested capital (2.45% vs 0.00%). Both pay a dividend; OneMain Holdings, Inc. yields more (9.13% vs 2.42%). Across the 22 metrics below, Bread Financial Holdings, Inc. leads on 14 and OneMain Holdings, Inc. on 8.

Valuation

Metric BFH OMF Credit Services median
P/E 7.97 8.64 9.64
P/S 0.87 1.04 0.87
P/B 1.22 1.96 1.16
Price to free cash flow 1.90 2.04 2.99
EV/EBITDA n/m n/m 9.58
EV/Sales (2.67) 4.52 2.32
Earnings yield 12.55% 11.58% 6.72%
Free cash flow yield 52.66% 49.09% 12.33%

Profitability

Metric BFH OMF Credit Services median
Gross margin 100.00% 79.74% 77.13%
Operating margin 76.34% 0.00% 0.34%
Net margin 11.87% 12.26% 9.25%
Free cash flow margin 45.67% 50.72% 13.03%
Return on equity 17.27% 23.28% 8.49%
Return on assets 2.55% 2.89% 2.29%
Return on invested capital 0.00% 2.45% 4.09%

Growth

Metric BFH OMF Credit Services median
Revenue growth (TTM) 0.72% 7.04% 4.62%
EPS growth (last fiscal year) 98.36% 54.72% —
Revenue growth, 5-year CAGR 4.34% 4.76% 9.13%
Net income growth, 5-year CAGR 19.34% 1.41% 0.00%

Health

Metric BFH OMF Credit Services median
Debt to equity 0.98 6.73 0.68
Current ratio 1.17 0.00 1.55
Net debt to EBITDA (4.25) 0.00 0.13

Dividend

Metric BFH OMF Credit Services median
Dividend yield 2.42% 9.13% 3.34%
Payout ratio 0.08 0.73 0.00

Size

Metric BFH OMF Credit Services median
Market cap 3.90b 6.52b 872.19m

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